INTRADAY TECHNICAL ANALYSIS 8 JUNE (observation as of 05:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.22143 and 1.22368.

-        Support line of 1.21415 and 1.21190.

Commentary/ Reason:

  1. The euro fetched $1.21803, bouncing back from its 3-week trough of $1.21035 set on Friday.

  2. The pair is trading rangebound as investors now looked to consumer price data on Thursday for fresh direction. Many investors now expect the Fed to unveil a plan to reduce its bond purchase later this year, and actual tapering to start early next year.

  3. The pair were supported after Tass on Monday reported the Russian government might order state companies to switch to euros from dollars for cash payments.

  4. Meanwhile the dollar held its position after Treasury Secretary Yellen endorsed higher interest rates as good for the economy.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.90131 and 0.90322.

-        Support line of 0.89515 and 0.89324.

Commentary/ Reason:

  1. The dollar hardly budged against the Swiss franc on Tuesday, to trade at 0.89769.

  2. The pair is traded rangebound as investors now looked to consumer price data on Thursday for fresh direction.

  3. The dollar meanwhile still positioned to be more advantageous and supported as investors returned to safe-haven currencies due to cautious sentiment on the global market.

USDCHF         

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.42090 and 1.42403.

-        Support line of 1.41077 and 1.40763.

Commentary/ Reason:

  1. The British pound edged lower against the dollar at $1.41585 on Tuesday.

  2. The U.S. to the pound is treading water amid an improvement in the battle against COVID-19 in the UK. The flattening new COVID-19 cases in UK over the past few days, coupled with an acceleration in the vaccine rollout in the country, were boosting the prospects of a full reopening of its economy, which should, in turn, be supportive for the sterling.

  3. At the same time, investors also keep digesting mixed economic data from the U.S and mixed signals on the probability of a U.S. interest rate hike.

  4. Meanwhile, the UK was supported as it recently gets green light to start talks on joining Trans-Pacific Partnership (CPTPP). The decision marks another step in Britain's efforts to pivot away from Europe, build global influence and form new trading links with faster growing economies following its exit from the EU at the end of 2020.

GBPUSD