INTRADAY TECHNICAL ANALYSIS 11 JUNE (observation as of 04:45 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.22025 and 1.22229.
- Support line of 1.21364 and 1.21159.
Commentary/ Reason:
The euro gained 0.17% to $1.21878 on Friday, on track for modest weekly gains.
A dovish commitment from the European Central Bank to stick with its elevated tempo of bond buying held the euro in check. The euro saw underlying support from the ECB’s hike in its 2021 Eurozone GDP forecast to 4.6% from 4.0% and its hike in its 2021 Eurozone inflation forecast to +1.9% from +1.5%.
Meanwhile, the dollar loses its ground due to rising inflation.
The EUR/USD is stuck to the 1.217 price line despite a rise in selling pressure. The current trading range appears unlikely to be sustained given the lack of conviction from buyers. Momentum indicators have moderate downward trajectories.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89955 and 0.90184.
- Support line of 0.89214 and 0.88986.
Commentary/ Reason:
The dollar traded marginally lower against the Swiss franc on Friday, shed 0.07% to 0.89374, and heading for about half percent losses for the week.
The dollar was down after alternating between losses and gains earlier in the session as investors digested elevated U.S. inflation and ECB commentary.
Investors now eyeing the U.S. Federal Reserve’s next meeting in next week.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.42055 and 1.42463.
- Support line of 1.40732 and 1.40323.
Commentary/ Reason:
The dollar was on track for modest weekly losses on the British pound, last trading at $1.41819 per pound.
The deterioration of relations between the EU and the UK will be the focus in the coming days amid whispers of a possible trade war between the two sides due to the failure to reach an agreement on the implementation of the Northern Ireland Protocol.
It is also noted that the gains of the sterling pound may be subject to evaporation if the current fears of the future of ending plans to reopen the British economy continue. This is amid the outbreak of variable strains of the COVID-19 epidemic, negatively affecting the British vaccination path, compared to other global economies.
Sterling 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.
