INTRADAY TECHNICAL ANALYSIS 10 JUNE (observation as of 04:30 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.22187 and 1.22374.

-        Support line of 1.21582 and 1.21394.

Commentary/ Reason:

  1. The euro retreated 0.1% to $1.21669 on Thursday, reversing trajectory after rose to a 1-week high of $1.22177 on Wednesday.

  2. The euro is weighted down as the currency is sensitive to changes in the bank's economic forecasts or any signal that the pace of bond buying could be reduced in months ahead, although the ECB is widely expected to keep policy settings steady.

  3. The ECB policy decision is due at 1145 GMT, followed by U.S. CPI report and jobless claims later in the day that is expected to provide further clarity on policymakers' view on a rise in prices and the future of economic support measures.

  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.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89817 and 0.90011.

-        Support line of 0.89190 and 0.88997.

Commentary/ Reason:

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

  2. The dollar traded marginally higher against the Swiss franc on Thursday, added 0.06% to 0.89599.

  3. The dollar is 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, jobless claims, and ECB policy meeting on Thursday for fresh direction.

USDCHF

              

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.41857 and 1.42167.

-        Support line of 1.40856 and 1.40547.

Commentary/ Reason:

  1. The British pound eased to $1.41094 on mid-morning Asian Thursday trade.

  2. Investors have adopted a wait-and-see attitude all week, sucking volatility from the market and leaving the pair mostly range-bound.

  3. 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 country reopening plans scheduled for June 21.

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

  5. 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