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FX analysis

Short-term FX Technical Strategy (10 June 2022)

foreign exchange

EUR/USD – Toppish configuration bearish breakdown as expected

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EUR/USD has staged the expected bearish breakdown from its minor “Double Top” configuration as per highlighted in our previous report dated on 7 June 2022; post ECB press conference yesterday, 9 June.

No change, maintain bearish bias with a tightened key short-term pivotal resistance at 1.0710 for a further potential impulsive down move towards 1.0550 and 1.0480 next.

On the other hand, a clearance with an hourly close above 1.0710 put a pause to the bearish tone for a squeeze up to retest the 31 May 2022 swing high of 1.0790.

GBP/USD – Watch the 1.2470 downside trigger

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No change, maintain bearish bias and a break with an hourly close below 1.2470 is likely to trigger a potential minor “Double Top” bearish breakdown for a further drop towards 1.2410 and 1.2340.

However, a clearance with an hourly close above 1.2590 invalidates the bearish scenario for an extension of the corrective rebound towards the recent 27/30 May swing high of 1.2660 before the next resistance zone of 1.2770/2810 (also the former major ascending channel support from 1 June 2021 high).

USD/JPY – Relentless bull, watch 132.95 key support

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USD/JPY has continued to march upwards since our previous report dated on 7 June 2022 as expected.  It has printed out a series of higher highs and higher lows within its current short-term uptrend phase in place since 24 May 2022 low.

No clear signs of exhaustion for the bulls at this juncture, maintain bullish bias with a tightened key short-term pivotal support now at 132.95 in any dips for a further potential push up towards 134.90 and 135.70 next.

On the flipside, a break with an hourly close below 132.95 damages the current short-term uptrend for a deeper corrective pull-back within its medium-term uptrend phase towards the next support zone of 130.95/45 before another round of potential bullish movement reasserts.  

AUD/USD – Broke below 0.7125, further potential drop

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AUD/USD has staged the expected bearish breakdown below 0.7125 downside trigger level post RBA as per highlighted in our previous report dated on 7 June 2022.

No change, maintain bearish bias in any bounces (risk increases due to oversold condition seen in hourly RSI) below tightened key short-term pivotal resistance at 0.7170 for a further potential drop towards 0.7045 and 0.7000.

However, a clearance with an hourly close above 0.7170 negates the bearish tone for a squeeze up to retest 0.7230/7260 (3/8 June 2022 swing high area).

Time stamped: 10 June 2022 at 8.15am SGT

Source: CMC Markets

 


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

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