INTRADAY TECHNICAL ANALYSIS 24 AUGUST (observation as of 05:55 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.17643 and 1.17862.

-        Support line of 1.16935 and 1.16716.

Commentary/ Reason:

  1. The euro was flat at $1.17440, held just below its 1-week high of $1.17500 touched yesterday.

  2. The dollar turned weak after market risk sentiment was bolstered by positive news about the pandemic’s latest wave.

  3. While worries from the Delta variant could derail economic recovery, PMI releases from key markets revealed negligible impact on business activity across the manufacturing and services sectors, reassuring markets and driving up the demand for riskier instruments. This sent investors away from the safety of the greenback.

  4. The dollar’ losses however was managed to be restrained, owing to optimism that the Fed could confirm a timeline for starting the tapering of its asset purchase program during the upcoming Jackson Hole symposium.

  5. All eyes are on Chairman Jerome Powell’s speech for confirmation or even clues on when the U.S. central bank could begin pulling back on monetary stimulus.

  6. Resistance is at 1.176, a swing high from last week. Further above, 1.1785 is eyed. Some support is at 1.169, which cushioned the pair in early August. It is followed by 1.167, the new 2021 trough.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91772 and 0.92010.

-        Support line of 0.91000 and 0.90762.

Commentary/ Reason:

  1. The dollar was steady against the Swiss franc on Tuesday, traded at 0.91266 franc.

  2. The greenback dropped more than 0.6% in the last two days, as markets focused on positive COVID-19 news and stocks jumped higher.

  3. The dollar eased as investors repositioned themselves ahead of the U.S. Federal Reserve’s Jackson Hole Economic Policy Symposium, an annual platform where the central bank could signal its monetary policy stance.

  4. The USD/CHF pair faced strong negative pressure, which leads the price to achieve more expected decline in the upcoming sessions, on its way to visit 0.910 initially. A bearish bias will be suggested for today unless breaching 0.917 and holding above it.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37606 and 1.38027.

-        Support line of 1.36247 and 1.35827.

Commentary/ Reason:

  1. Sterling added 0.22% to $1.37415, moves further up from a 1-month low of $1.36019 at the end of last week.

  2. The GBP/USD pair rose as investors reflected on the flash Manufacturing and Services PMI numbers from the UK and the U.S. The data showed that the PMIs in the two countries declined slightly in August, but they remained substantially above the key level of 50.

  3. The GBPUSD pair has stalled at the 1.370 price. If price breaks the session’s high, it could move higher toward the high of August 19 at 1.376. The MACD indicator still points at the underlying bullish sentiment. Any uptick in the MACD could bring more buying opportunities.

  4. Alternatively, if price moves lower, GBP/USD could touch the 1.362 horizontal support level followed by 1.3582.

GBPUSD