INTRADAY TECHNICAL ANALYSIS 1 SEPTEMBER (observation as of 06:45 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18482 and 1.18681.

-        Support line of 1.17838 and 1.17639.

Commentary/ Reason:

  1. The euro retreated from its 3-week high recorded in the previous session against the dollar, to stood at $1.17962 per dollar on Wednesday.

  2. Treasury yields climbed following losses in European sovereign bonds.

  3. The chart below pointing to oversold conditions, as the RSI is heading below 30. Support awaits at 1.1783, held EUR/USD down last week, and then further down at 1.1763.

  4. The next resistance line is 1.1848, which capped the pair yesterday, and then followed by 1.1868.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91850 and 0.92096.

-        Support line of 0.91055 and 0.90810.

Commentary/ Reason:

  1. The dollar rose almost 0.40% against the Swiss franc on Wednesday, to trade at 0.9185 franc.

  2. The USD/CHF pair continues to fluctuate within the sideways range that its lines represented by 0.9105 support and 0.9185 resistance, approaching to test the mentioned resistance now.

  3. Being said that, if price moves higher, it could test the key 0.9209 level. And if price starts moving lower, it could retest the 0.9105 horizontal support level, and could seek the next target at the 0.9081 horizontal support level.

  4. Friday nonfarm payroll report is awaited by traders. Fed’s Powell suggested an improvement in the labour market is one major remaining prerequisite for the Fed to taper its asset purchases.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38337 and 1.39007.

-        Support line of 1.36997 and 1.36327.

Commentary/ Reason:

  1. The pound eased against the U.S. dollar to trade slightly lower today.

  2. Sterling held at $1.37441, retreated from its 3-week high yesterday.

  3. The GBP/USD pair is marginally changed for a second consecutive day, unable to attract buying interest despite the broad dollar’s weakness.

  4. Later today, the UK will publish the BRC Shop Price Index for July and August Nationwide Housing Prices. Nest, Markit will release the final reading of the UK August Manufacturing PMI.

GBPUSD