Short Term FX Technical Strategy (March 25, 2022)


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

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GBP/USD – Showing signs of recovery in the short term

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GBP/USD staged the expected rebound from its March 24, 2022 minor low of 1.3155 and broke through the bullish trigger of 1.3215 as seen in yesterday’s report.

Additionally, the hourly RSI continues to show positive short-term bullish momentum as it sits above the 50% level after rebounding from key support at 30% yesterday. Maintain a bullish bias with 1.3150 as key near-term pivot support for potential further upside move to retest the March 23, 2022 minor swing high zone 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 – The resistance of 122.25 has been reached, the bullish momentum has started to weaken

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USD/JPY rallied as expected and hit 122.25 resistance/target as seen in yesterday’s report (printed an intraday high of 122.44 in today’s first Asian session today).

The short-term bullish momentum started to turn negative as the hourly oscillator RSI issued a bearish divergence signal in its overbought region and staged a breakout below its corresponding key support at the 50% level. Switching to near-term pivot resistance below 122.45 and a break below 120.55 increases the chances of a minor pullback in its ongoing medium-term uptrend phase towards 119.10 support.

On the other hand, a breakout with an hourly close above 122.45 leads to further compression towards the next resistance at 123.70.

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

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AUD/USD staged the expected upside as seen in our report yesterday and reached the lower boundary of the key medium-term resistance zone at 0.7530/7560 that has capped previous rallies since the 6 July 2021.

Mix things up as the hourly RSI oscillator has shown a bearish divergence in its overbought region, indicating that the short-term bullish momentum has started to subside, reducing the chances of further price action higher. . Prefer to go neutral now between 0.7560 and 0.7450. Only a breakout with an hourly close above 0.7560 validates a potential new rally towards the next resistances at 0.7640 and 0.7690.

An hourly close below 0.7450 opens the possibility of a slight pullback towards next support at 0.7415 and 0.7365 next (also the middle line of the medium-term ascending channel in place since the January 28, 2022 low) .

Timestamp: March 25, 2022 at 1:50 p.m. SGT

Source: Trading View

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