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FX Analysis

Short-term FX Technical Strategy (25 Mar 2022)

forex

EUR/USD – Potential short-term upside momentum has revived

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GBP/USD – Showing signs of short-term recovery

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The GBP/USD has staged the expected rebound from its 24 March 2022 minor swing low of 1.3155 and broke above the 1.3215 upside trigger as per highlighted in yesterday report.

In addition, the hourly RSI continues to exhibit positive short-term upside momentum as it hovers above the 50% level after a rebound from a key corresponding support at the 30% yesterday. Maintain bullish bias with 1.3150 as the key short-term pivotal support for a further potential up move to retest the 23 March 2022 minor swing high area of 1.3290 and 1.3320 next.

On the other hand, an hourly close below 1.3150 invalidates the bullish scenario for a deeper slide towards the next support at 1.3080.

USD/JPY – 122.25 resistance reached, upside momentum has started to wane

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The USD/JPY has rallied as expected and hit the 122.25 resistance/target as per highlighted in yesterday report (printed an intraday high of 122.44 in today’s early Asia session).

Short-term upside momentum has started to turn negative as the hourly RSI oscillator has flashed a bearish divergence signal at its overbought region and staged a breakdown below its key corresponding support at the 50% level. Flip to a bearish below 122.45 key short-term pivotal resistance and a break below 120.55 increases the odds of a minor pull-back within its on-going medium-term uptrend phase towards the 119.10 support.

On the flipside, a clearance with an hourly close above 122.45 sees a further squeeze up towards the next resistance at 123.70.

AUD/USD – 0.7530/7560 medium-term resistance zone reached, mix elements

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The AUD/USD has staged the expected push up as per highlighted in our report yesterday and reached the lower boundary of the 0.7530/7560 key medium-term resistance zone that has capped prior rallies since 6 July 2021.

Mix elements as the hourly RSI oscillator has flashed a bearish divergence at its overbought region which indicates that short-term upside momentum has started to ease that reduces the odds of further up move in price actions. Prefer to turn neutral now between 0.7560 and 0.7450. Only a clearance with an hourly close above 0.7560 validates a further potential rally towards the next resistances at 0.7640 and 0.7690.

An hourly close below 0.7450 opens up scope for a minor pull-back towards the next support at 0.7415 and 0.7365 next (also the median line of the medium-term ascending channel in place since 28 January 2022 low).

Time stamped: 25 Mar 2022 at 1.50pm SGT

Source: TradingView


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