INTRADAY TECHNICAL ANALYSIS 28 JUNE (observation as of 06:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.19737 and 1.19967.

-        Support line of 1.18994 and 1.18765.

Commentary/ Reason:

  1. The euro was little changed at $1.19263, struggling to recover the $1.20 level.

  2. Activity was muted in currencies. Signs of a tight labour market have also kept many investors fretting over wage-driven price pressures. Friday's payroll data is a key focus - with economists expecting an increase of 675,000 jobs. Some reckoning on the dollar falling back into a downtrend if the jobs data passes without surprise.

  3. The EUR/USD has stalled after rebounding from the ascending trendline. A lack appetite from buyers have been met with rising selling pressure. Momentum indicators have flattened in bearish territory.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92085 and 0.92283.

-        Support line of 0.91442 and 0.91243.

Commentary/ Reason:

  1. The dollar advanced against the Swiss franc, added 0.2% to trade at 0.91847.

  2. The dollar is alternating between losses and gains and trade rangebound in the several recent sessions as investors digested elevated U.S. inflation expectation, against Fed Chair Powell which downplayed inflation risks.

  3. The dollar holding up on Monday, supported by the strength in T-note yields today.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39902 and 1.40277.

-        Support line of 1.38691 and 1.38317.

Commentary/ Reason:

  1. The pound bounced from last week heavy losses against the dollar, supported by steady crude oil prices and improved risk appetite. The pound bought at $1.38954.

  2. The British pound also made a comeback as headlines showing that tensions between the EU and the UK over the Northern Ireland Protocol are easing.

  3. The suffering from the outcome of the Bank of England’s monetary policy still weighted on the pound, which was mostly dovish, quite the opposite to the hawkish tone expected by market players. Limited demand for the greenback saves the pair from falling.

  4. The GBP/USD pair has pulled back from the 1.399 resistance area in another confirmation that the pair is now languishing in a consolidation range. Buyers appetite continues to fade and new rally attempts are short-lived. Momentum indicators have downward trajectories.

GBPUSD