Short Term FX Technical Strategy (August 19, 2022)

EUR/USD -Broken below 1.0100, at the risk of a new parity test

(click to enlarge table)

EUR/USD staged a bearish break below key short-term support at 1.0100, as highlighted in our previous report dated August 17th.

Key technicals turned negative as EUR/USD price began to swing within a minor descending channel from its August 11, 2022 high. Switch to a bearish bias in any bounce below the short-term pivot resistance at 1.0150 for another potential push down to retest the 1.0000 parity and psychological support level.

However, a breakout with an hourly close above 1.0150 negates the bearish tone for a push-up to retest 1.0270.

GBP/USD – Dropped below 1.2020. watch 1.1870 next

(click to enlarge table)

GBP/USD staged a breakdown below key short-term pivot support at 1.2020, as seen in our previous report dated August 17th.

Mixed items now; prefer to go neutral between 1.1870 (former falling trendline from the Feb 18, 2022 high now becomes pullback support) and 1.2020. A breakout with an hourly close below 1.1870 validates further decline to test the July 14, 2022 swing low at 1.1760.

On the other hand, a breakout with an hourly close above 1.2020 restores the bullish tone for a push-up to test 1.2280.

USD/JPY – New potential increase validated

(click to enlarge table)

USD/JPY staged a bullish clearance above 134.70, the upper boundary of the neutral zone as highlighted in our previous report dated August 17th.

Bullish movement validated; watch key near-term support at 135.30 for a potential further rally towards next resistance at 137.50/95.

However, a break with an hourly close below 135.30 negates the bullish tone for a choppy pullback towards 134.55 and 133.50 (the lower boundary of a minor ascending channel from the Aug 2, 2022 low).

AUD/USD – New potential bearish move intact

(click to enlarge table)

AUD/USD staged a break below key near term pivot support at 0.6945 as highlighted in our previous report dated August 17th.

Key elements point to an increased likelihood of a deeper slide from the August 11, 2022 swing high of 0.7135. Switch to a bearish bias in any bounce below near-term pivot resistance at 0.6990 for a potential further push towards the next supports at 0.6850 and 0.6800.

On the other hand, a breakout with an hourly close above 0.6990 negates the bearish tone for a push-up to retest 0.7070 and 0.7135/7150.

Timestamp: August 17, 2022 at 1:30 p.m. SGT

Source: CMC Markets

Background picture

How to trade the financial markets

A guide to spreading CFD betting and trading, with examples of different trading strategies and an introduction to the three pillars of trading.

get this free report

Mobile trading app

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not expressing opinions) is provided for informational purposes only and does not take into account your personal circumstances or objectives. Nothing in this document is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically restricted from processing prior to providing such material, we do not seek to take advantage of the material prior to its dissemination.