INTRADAY TECHNICAL ANALYSIS 24 MAY (observation as of 06:40 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.22461 and 1.22702.

-        Support line of 1.21681 and 1.21440.

Commentary/ Reason:

  1. The euro traded at $1.21914, added around 0.1% on Monday, though off a 3-month high of $1.22467 touched on Wednesday.

  2. The euro was capped by comments from the ECB President Christine Lagarde on Friday that it is still too early for the bank to discuss winding down its 1.85 trillion euro emergency bond purchase scheme.

  3. Still, the euro and other European currencies have been bolstered by rising optimism about economic reopenings in the region from coronavirus lockdowns. A PMI data covering the 19-country euro zone’s dominant service industry, published on Friday, bounced to 55.1 from April’s 50.5, well above expectations and its highest since June 2018.

  4. Next, all eyes will be on U.S. personal consumption and inflation figures this week. A high reading for the core inflation figures would ring alarms and could revive talk of an early tapering by the US Federal Reserve.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89894 and 0.90034.

-        Support line of 0.89614 and 0.89474.

Commentary/ Reason:

  1. The dollar eased to 0.89729, down 0.04% against the Swiss franc on Monday.

  2. The dollar has given back a bounce it made after a mention of possible future tapering discussions, in minutes from the Fed’s April meeting, prompted fears of early rate rises.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.42178 and 1.42537.

-        Support line of 1.41016 and 1.40657.

Commentary/ Reason:

  1. The British pound stood at $1.41514, rose 0.08%, although back down off Friday’s 3-month peak of $1.4233.

  2. Sterling is perched higher on Boris Johnson’s plan to unlock the UK economy appears on track after data showing COVID-19 vaccines are effective against a worrying variant boosted the government’s confidence in its proposed roadmap.

  3. In the country, around 72% of U.K. adults, the equivalent of around 37.9 million people have received a first dose of a vaccine, and 43%, around 22.6 million people, have got both doses.

  4. The lower 10-year T-note yield on Monday also helped the pound to rose higher against the dollar.

  5. The GBP/USD pair has found price stickiness at the recent rangebound line. Bulls appear to lack the appetite to drive the rally yet bears also lack conviction. A long-term bullish trend remains intact and support by an ascending trendline.

GBPUSD