INTRADAY TECHNICAL ANALYSIS August 09th (observation as of 08:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.09888
- Support line of 1.09650
Commentary/ Reason:
1. The price has consistently establishing lower lows and lower highs which set an expectation that is in downtrend and the price is at current highs.
2. The weakness in USD is expected to continue going into Q4 as credit downgrade looms ahead of inflation data.
3. US inflation data that is CPI and initial jobless claims is expected to move the market as well as US Federal Budget Balance.
4. The price is expected to follow the current direction to its lower lows but may rebound in certain minor support area along the way.
5. Technical indicators are turning to sell with most at neutral suggesting a reversal in the micro trend while mid to long term moving average is still at buy while shorter term have already turn to sell.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.87615
- Support line of 0.87470
Commentary/ Reason:
1. The pair have been moving in a volatile fashion with lower highs and higher lows indicating a consolidation but the price have already break above this consolidation before losing momentum.
2. The price was mostly influenced by strength stability in the franc and volatility of USD amid weak china trade ahead of inflation data.
3. US inflation data that is CPI and initial jobless claims is expected to move the market as well as US Federal Budget Balance.
4. The price has tested a significant support area and formed a strong engulfing candle to the upside which suggest its at the end of a micro downtrend and preparing for upside movement.
5. Technical indicators are mostly buy and overbought while all moving averages are also buy as a result from strong uptick except MA100.
[USDJPY]
Important Levels to Watch for:
- Resistance line of 143.434
- Support line of 143.952
Commentary/ Reason:
1. The price have been volatile as it fall, recover, and consolidating in a wide range trading session.
2. The yen and usd are both highly volatile currency that is getting harder to predict in its price pattern that moves to the upside on active bond buying by the Japanese government while its now steady as investor anticipate inflation data.
3. US inflation data that is CPI and initial jobless claims is expected to move the market as well as US Federal Budget Balance.
4. The price have no clear direction as it is consolidating in the shorter term but a break above the resistance suggest that it will continue its previous trend which is uptrend.
5. Technical indicators are concrete with most at buy as well as moving average.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.27655
- Support line of 1.27375
Commentary/ Reason:
1. The pair have been creating steady higher lows but the price broke below the trend before rebounding, indicating its preparation for a trend reversal in one of the classic pattern.
2. The price reversal may be the result of analyst suggesting that the bank of England have run out of reason on the data side to continue its rate hike and its tightening period may end soon which send sterling lower in comparison to the US that is expecting an another rate hike.
3. US inflation data that is CPI and initial jobless claims is expected to move the market as well as US Federal Budget Balance.
4. The price already broke below its minor resistance and created a bearish engulfing candle which is expected to continue on its downtrend with possibility of minor rebound at each support level either on Fibonacci or price levels.
5. Technical indicator is mixed with most are pushing selling signals with RSI is at neutral while moving average suggest selling in the shorter term and still a buy on the longer term.
