Daily Forex Technical Strategy Tues 27 Aug

USD/JPY – Potential push back down towards range lower limit

click to enlarge chart

The pair has staged the expected push down and met the downside target/support of 104.65 yesterday, 26 Aug Asian session (click here to recap our previous report). Thereafter, it has reversed swiftly by 196 pips to print an intraday high of 106.41 on the backdrop of U.S/China trade deal optimism.
Technical elements are still now showing any clear signs of a major bullish reversal. Also, the 1-hour RSI oscillator has retested a significant corresponding resistance at the 62 level and retreated. Maintain bearish bias in any bounces below 107.00 key short-term pivotal resistance for another round of potential push down towards 105.15 follow by 104.65/40 (lower limit of a complex range configuration in place since 06 Aug 2019). However, a clearance with an hourly close above 107.00 sees an extended corrective rebound towards 107.80 (former ascending range support from 25 Jun 2019 low)

EUR/USD – 1.1170 key short-term resistance to watch

click to enlarge chart

Last Fri, 23 Aug, the pair has staged a squeeze up above the 1.1115 tightened key short-term resistance and almost reached the alternate target of 1.1170 (the former minor range support & descending trendline from 06 Aug high).
Thereafter, it has retreated by 70 pips to print a low of 1.1093 in yesterday, 26 Aug U.S. session. It is still evolving within a range configuration since 01 Aug 2019 low, 1.1170 will be the short-term pivotal resistance for a potential push down towards 1.1050 before the 01 Aug 2019 swing low of 1.1025. However, a clearance with an hourly close above 1.1170 negates the bearish tone for an extended corrective rebound towards 1.1240 (06 Aug 2019 swing high area & descending trendline from 10 Jan 2019 high).

GBP/USD – Retreated from 1.2300 with bearish elements

click to enlarge chart

The pair has pushed up and staged a retreat right below the 1.2300 upper limit of the short-term neutrality range as per highlighted in our previous report. Bearish elements have emerged, the pair has ended yesterday, 26 Aug U.S. session with a daily “Evening Star” bearish candlestick pattern coupled with a bearish divergence seen in the 1-hour RSI oscillator.
Flip back to a bearish bias below 1.2300 key short-term pivotal resistance and a break below 1.2170 is likely to reinforce a potential downleg to target 1.2075 and 1.2000/1950 next. However, a clearance with an hourly close above 1.2300 invalidates the bearish scenario for an extended corrective rebound towards the next intermediate resistance at 1.2430.

AUD/USD – Potential push down to retest range support

click to enlarge chart

The pair has staged a push up to retest the upper limit of its minor range configuration in place since 07 Aug 2019 after it hit a minor swing low area of 0.6695 seen yesterday, 26 Aug Asian session.
Bearish bias below 0.6795 key short-term pivotal resistance for a potential push down to retest the range support zone of 0.6695/6675. However, a break with an hourly close above 0.6795 sees an extension of the corrective rebound towards the next resistance at 0.6865 (also close to the 50% Fibonacci retracement of the recent steep decline from 18 Jul high to 07 Aug 2019 low).

Charts are from eSignal

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.