INTRADAY TECHNICAL ANALYSIS 25 AUGUST (observation as of 05:45 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.17877 and 1.18279.

-        Support line of 1.17073 and 1.16671.

Commentary/ Reason:

  1. Against the dollar, the euro slipped 0.08% to $1.17441 on Wednesday, after touching a 1-week high of $1.17648 overnight.

  2. Risk appetite in global markets has strengthened since the U.S. FDA granted full approval to the COVID-19 vaccine developed by Pfizer and BioNTech in a move that could accelerate U.S. inoculations.

  3. Signs of stronger growth in Germany also lend support to the euro after German Q2 GDP was revised upward.

  4. Gains in the euro were limited, however, by political uncertainty in Germany after a Forsa poll on Tuesday showed Germany’s Social Democrats overtaking Chancellor Merkel’s CDU/CSU alliance.  For the first time in 15 years, the Social Democrats have overtaken the Christian Democrats with only one month to go before the Sep 26 election.

  5. The EUR/USD pair approached 1.178 level yesterday, before begins providing bearish turn signals and heads to resume the negative trades inside the bearish channel that appears on the chart, making the bearish bias suggested in the upcoming sessions, targeting 1.170 followed by 1.166 levels as next main stations. Breaching 1.1780 will led the price to turn higher.

  6. Markets eagerly await the Federal Reserve's Jackson Hole event later in the week, with Chair Jerome Powell's speech on Friday being the highlight.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91565 and 0.91696.

-        Support line of 0.91041 and 0.90910.

Commentary/ Reason:

  1. The dollar rose 0.20% against the Swiss franc on Wednesday, traded at 0.91424 franc after bouncing off 1-week low recorded yesterday.

  2. The risk-on impulse undermined the safe-haven Swiss franc and extended some support for the greenback.

  3. The dollar hangs 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. Easing tapering fears continued weighing on the dollar and capped the upside for the major.

  4. The USD/CHF pair begins today positively to move higher, before faces good resistance, which supports the chances of resuming the expected bearish bias for the upcoming period, reinforced by stochastic loss to the positive momentum, waiting to head towards 0.910 mainly.

  5. On the other hand, breaching 0.9150 will lead the price to achieve additional rises that target 0.916.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37773 and 1.38333.

-        Support line of 1.36653 and 1.36093.

Commentary/ Reason:

  1. The pound extended its winning streak for the third consecutive day today, bolstered by the positive market sentiment, coupled with the weaker greenback performance.

  2. Sterling held at $1.37256, moves further up from a 1-month low of $1.36019 at the end of last week.

  3. Intraday bias in GBP/USD remains neutral at this point. Outlook is unchanged with 1.377 minor resistance intact. On the downside, firm break of 1.366 will resume to 1.360 support next. Break of 1.377 will turn bias back to the upside for 1.383 resistance intact.

GBPUSD