INTRADAY TECHNICAL ANALYSIS 8 SEPTEMBER (observation as of 06:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18853 and 1.19041.

-        Support line of 1.18242 and 1.18053.

Commentary/ Reason:

  1. The euro was flat at $1.18382 on Wednesday after dipping in the previous session.

  2. The euro moved lower after the German Sep ZEW survey expectations of economic growth fell to a 1-1/2 year low of 26.5, weaker than expectations of 30.3.

  3. Although losses were limited, after Eurozone Q2 GDP was revised upward, and as focus turned to the ECB meeting, on the potential cut to the pace of bond purchases, particularly following some hawkish comments from policymakers last week.

  4. The prospect of a slower economic reopening and an eventual reduction in emergency stimulus support from the Federal Reserve and European Central Bank are leading to some investor wariness.

  5. The EUR/USD has rebounded from the 1.188 resistance level and descending trendline. Rising bearish activity in yesterday’s trading indicates that sentiment has shifted, and the rally has broken down. The pair will likely trade in range in the near-term as traders awaited on central banks meeting decision.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92181 and 0.92456.

-        Support line of 0.91290 and 0.91014.

Commentary/ Reason:

  1. After testing the weekly high of 0.91983 overnight, USD/CHF consolidates gains in the Asian session on Wednesday.  At the time of writing, the pair is trading 0.92029, rose 0.1% for the day.

  2. The USD/CHF pair continues to fluctuate within the sideways range. The Swiss franc holds some ground on its safe-haven appeal amid reduced risk appetite.

  3. The USD/CHF pair traded with positively to test 0.9218 resistance, which represents the sideways range’s resistance line that confines the recent trades, while no change to the sideways scenario until the price manages to surpass this resistance or break 0.912 support.

  4. Breaching the resistance will lead the price to 0.9245, while breaking the support will press on the price to start bearish wave that targets 0.9101.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38566 and 1.38913.

-        Support line of 1.37441 and 1.37093.

Commentary/ Reason:

  1. The pound sterling eased versus the U.S. dollar at today's opening as traders await the release of the U.S. jobs data report tomorrow. The pair last bought at $1.37616.

  2. The pair fell on the broad dollar’s demand and despite hawkish comments from Bank of England policymaker Michael Saunders, who suggested the UK no longer needs as much monetary stimulus as previously, and that could limit the downside.

  3. The GBP/USD also will likely come under downward pressure as UK politics return as a major factor determining its next move. K Prime Minister Boris Johnson faces a backlash from within his own ruling Conservative Party to plans to increase National Insurance to pay for health and social care.

  4. The GBP/USD pair broke the bullish channel’s support line clearly and settled below it, which stops the recently suggested positive scenario and lead the price to turn to decline, to head towards achieving negative targets that start by visiting 1.3744 areas.

  5. Breaching 1.385 will push the price back to the bullish track again to head towards 1.389.

GBPUSD