INTRADAY TECHNICAL ANALYSIS 6 JULY (observation as of 05:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18950 and 1.19256.

-        Support line of 1.18338 and 1.18032.

Commentary/ Reason:

  1. The euro held at $1.18757, gaining 0.14% but still traded more or less where it left off Friday.

  2. The pair did not show any strong move since yesterday following the U.S. holiday. Intraday bias in EUR/USD remains neutral at this point.

  3. Euro zone government bond yields nudged higher, but analysts expect the recent downward trajectory to resume after the U.S. payrolls data.

  4. The publication of the U.S. FOMC minutes for June on Wednesday is highly anticipated by investors for guidance on whether ongoing emergency stimulus measures could start to be tapered.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92516 and 0.92852.

-        Support line of 0.91844 and 0.91508.

Commentary/ Reason:

  1. The dollar declined against the Swiss franc on Tuesday, slipped 0.16% to trade at 0.92516 on Tuesday.

  2. Outlook in USD/CHF remains neutral at this point and intraday bias stays neutral first. Another rise could still be seen as long as the support holds. Break of 0.925 would pave the way to 0.928 key resistance next. On the downside, however, break of the first support will argue that the rebound from 0.8925 has completed, and turn bias back to the downside for this low.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39139 and 1.39637.

-        Support line of 1.37527 and 1.37029.

Commentary/ Reason:

  1. Sterling rose to 1-week high on Tuesday at $1.38864, after three consecutive days of gains.

  2. Sterling nudged higher after Britain set plans to end COVID-19 restrictions in a fortnight. England final lockdown restrictions is due to be lifted on July 19, thanks to the success of the vaccination programme.

  3. fears over trade tensions with the EU also calmed after the EU granting a delay to the chilled meat ban in Northern Ireland.

  4. GBP/USD has found support at the start of the trading week and may now move back to test the 1.39 resistance line. The current trading range represents a previous consolidation zone for the pair.

GBPUSD