INTRADAY TECHNICAL ANALYSIS 9 JUNE (observation as of 05:30 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21958 and 1.22081.

-        Support line of 1.21560 and 1.21437.

Commentary/ Reason:

  1. The euro added slightly to $1.21789.

  2. The pair is trading rangebound as traders looked to upcoming U.S. inflation data and an ECB meeting to gauge the global recovery and policymakers' thinking.

  3. Though investors have now scaled back expectations that the ECB may indicate a plan to reduce its asset purchases when it reviews policy on Thursday. The euro is likely to be sensitive to changes in the bank's economic forecasts or any signal that the pace of bond buying could be reduced in months ahead.

  4. The yields on U.S. Treasury debt fell to their lowest in more than a month, while the eurozone bond yields nudged down with markets in a wait-and-see mood.

  5. The EUR/USD buyers are struggling to overcome the 1.217 obstacle, as the latest pullback has seen price action contained. The pair may now consolidate at this price level until fundamental factors change.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89950 and 0.90119.

-        Support line of 0.89402 and 0.89233.

Commentary/ Reason:

  1. The Swiss franc traded little changed against the U.S. dollar today due to mixed sentiment that supported the greenback.

  2. Latest, the currency remained at 0.89657 against the greenback.

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

  4. Investors now looked to the U.S. consumer price data on Thursday for fresh direction.

USDCHF

              

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.41915 and 1.42167.

-        Support line of 1.41099 and 1.40847.

Commentary/ Reason:

  1. The British pound edged slightly higher against the dollar at $1.41553 on Wednesday, rose 0.02%.

  2. Sterling has stalled as doubt has crept in over whether rising cases of the coronavirus' Delta variant in Britain could prompt British government to delay business reopening plans scheduled for June 21.

  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. The GBP/USD pair is trying to break the 1.419 resistance price level and has been testing this resistance line since mid-May. A break is yet to materialise as buyers lack the conviction to drive price action higher.

GBPUSD