INTRADAY TECHNICAL ANALYSIS 6 SEPTEMBER (observation as of 06:40 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.19071 and 1.19373.

-        Support line of 1.18093 and 1.17791.

Commentary/ Reason:

  1. The euro was flat at $1.18724 after matching the highest level since June 29 at $1.19086 at the end of last week. The single currency has been supported by expectations the European Central Bank, which meets Thursday, is close to tapering its own stimulus programme.

  2. The ECB holds its policy meeting this week and a number of policy hawks have been calling for a step back in their huge asset buying programme, though President Christine Lagarde has sounded more dovish.

  3. Intraday bias in EUR/USD remains mildly on the upside with focus on 1.1907 resistance. However, on the downside, rejection by 1.1907 will turn bias back to the downside for 1.180 support instead.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91703 and 0.91837.

-        Support line of 0.91268 and 0.91133.

Commentary/ Reason:

  1. The dollar rose slightly against the Swiss franc on Monday, to trade at 0.91459 franc.

  2. The USD/CHF pair continues to fluctuate within the sideways range that its lines represented by 0.9126 support and 0.9170 resistance, approaching to test the mentioned resistance now.

  3. And if price moves higher, it could test the key 0.9183 level. And if price starts moving lower, it could retest the 0.9113 horizontal support level, its supports line for several recent trading.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38770 and 1.38950.

-        Support line of 1.38410 and 1.38230.

Commentary/ Reason:

  1. Sterling last sat at $1.38476, eased back from its 3-week high touched Friday last week.

  2. The greenback languished near a one-month low after a weaker-than-expected U.S. payrolls report on Friday raised hopes that the U.S. central bank would retain its accommodative monetary policy for longer. The Fed has made a labour market recovery a condition for paring back its pandemic-era asset purchases.

  3. The GBP/USD continues to make bullish moves on ascending trendline, implying strong bullish conviction. The 1.3895 resistance line will remain in sight and represents a previous obstacle for the pair. Momentum indicators have turned bullish.

GBPUSD