INTRADAY TECHNICAL ANALYSIS 7 SEPTEMBER (observation as of 06:15 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18904 and 1.19027.

-        Support line of 1.18509 and 1.18387.

Commentary/ Reason:

  1. The euro unable to hold above $1.19, and changed hands at $1.18728 on Tuesday, a tad below Friday's 1-month peak of $1.19086.

  2. The pair were rangebound on Tuesday as traders braced for a central bank meeting this week, looking for any signs that they are making progress towards policy normalisation.

  3. With the euro zone economy roaring back to life, the ECB will debate a cut in its stimulus on Thursday, beginning a hard-fought and lengthy discussion on how to dismantle the crisis-fighting measures that have kept the bloc afloat.

  4. The main event of the week falls on Thursday when the European Central Bank meets, with the focus on a potential cut to the pace of bond purchases, particularly following some hawkish comments from policymakers last week.

  5. If the central bank pauses its tapering plans, traders are likely to sell the currency, possibly pushing the euro towards its support level, while a hawkish central bank would send the currency higher.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91723 and 0.91862.

-        Support line of 0.91272 and 0.91132.

Commentary/ Reason:

  1. The Swiss franc traded flat to marginally higher against a weaker dollar on Tuesday, as the possibility of a delay in monetary policy tapering in the U.S. put pressure on the greenback.

  2. The dollar last bought at 0.91492 franc.

  3. The USD/CHF pair continues to fluctuate within the sideways range that its lines represented by 0.9127 support and 0.9172 resistance.

  4. Being said that, if price moves higher, it could test the key 0.9186 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 1.38652 and 1.38817.

-        Support line of 1.38121 and 1.37957.

Commentary/ Reason:

  1. The sterling was steady at $1.38304 on Tuesday. The GBP/USD pair begins today’s trading positively after the slight decline that it witnessed in the previous sessions, motivated by the positive signal provided by stochastic, waiting to achieve new targets that start at 1.3865 and extend to 1.3881.

  2. On the other hand, a decline of the pair below the 1.381 level could look for the next support in the 1.379 level.

  3. The U.S. dollar is still under pressure from fundamental and technical factors. Looming over the market and the central bank meetings this week is the stance of the U.S. Federal Reserve, which has flagged asset purchase tapering before year’s end but has said it depends on labour markets which are suddenly looking wobbly.

GBPUSD