Short Term FX Technical Strategy (June 15, 2022)

EUR/USD – Boost around key short-term support at 1.0430, tolerates an overshoot at 1.0400

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Since our last report dated June 13, 2022, EUR/USD has broken below key short-term support at 1.0430 as it printed an intraday low of 1.0397 on June 14 before re-entering above above 1.0430.

More elements have now emerged to support the potential short-term corrective tactical bounce scenario where the hourly RSI has shaped a bullish divergence signal in its oversold region. Maintain the bullish bias with short-term pivot support now at 1.0400 for a potential push towards intermediate resistances at 1.0540 and 1.0590.

However, a break with an hourly close below 1.0400 invalidates the short-term tactical rebound scenario for a continuation of the sequence of impulsive bearish moves towards 1.0370/1.0350 and 1.0300.

GBP/USD – Falls to a 2-year low but a short-term rebound cannot be ruled out

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The recent steep drop in GBP/USD seen over the past two days has begun to exhibit an extreme bearish momentum condition where the hourly RSI oscillator has issued a bullish divergence signal in its oversold region.

Maintain a bullish bias with 1.1900/1860 as key short-term support for a potential short-term corrective tactical rebound towards 1.2110 and a break above could see 1.2220 next.

On the other hand, a break with an hourly close below 1.1860 invalidates the short-term rebound scenario for a continuation of the sequence of impulsive bearish moves towards 1.1740/1715 initially.

USD/JPY – Bearish elements have started to emerge just below the key resistance at 135.70

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USD/JPY staged a push towards the upper boundary of 135.70 of the neutral zone as seen in our previous report dated June 13, 2022. It printed an intraday high of 135.59 during today’s Asian session before pulling back.

Since June 9, 2022, USD/JPY prices have started to oscillate in a short-term “Expanding Wedge” pattern with a current bearish divergence signal displayed on the hourly RSI oscillator indicating that the short-term bullish momentum term began to fade. stopped.

Moving into a bearish bias from a neutral position below key near-term pivot resistance at 135.70 and a break below 133.95 (lower boundary of the “expanding wedge”) could trigger a deeper corrective pullback around 132.95 in the first leg of its middle course. term uptrend phase.

However, a breakout with an hourly close above 135.70 sees the continuation of the impulsive upstreak towards 137.20/50 next.

AUD/USD – Exhaustion expected in short-term bearish momentum, watch key support at 0.6830

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The bearish momentum from the decline seen in AUD/USD over the past couple of days has started to fade. The RSI Hourly Oscillator issued a bullish divergence signal in its oversold region and staged a bullish breakout from key corresponding falling former resistance at the 42% level during today’s Asian session.

Watch key short-term support at 0.6830 and a break above 0.6960 may reinforce a short-term corrective tactical bounce scenario towards 0.7035 next.

On the other hand, a breakout with an hourly close below 0.6830 invalidates the short-term bounce scenario for a continuation of the impulsive downside move streak towards 0.6760 in the first leg.

Timestamp: Jun 15, 2022 3:55 PM SGT

Source: CMC Markets