INTRADAY TECHNICAL ANALYSIS 9 DECEMBER (observation as of 05:55 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.14077 and 1.14646.

-        Support line of 1.12236 and 1.11666.

Commentary/ Reason:

  1. The euro was at $1.13326, slightly lower after gaining 0.68% on Wednesday to a week high of 1.13545.

  2. The market´s mood is unstable, as investors are still struggling to price in the latest coronavirus developments and the latest from central banks after the Fed announced it might speed up tapering in their next meeting.

  3. Recovering U.S. Treasury yields on the day helped the dollar, though bounce in equities putting mild pressure on the greenback.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92528 and 0.92761.

-        Support line of 0.91777 and 0.91545.

Commentary/ Reason:

  1. The dollar rose 0.12% higher against the Swiss franc on Thursday, last traded at 0.92079 franc.

  2. The pair struggles to keep the gains as the Swiss franc holds on to its safe-haven appeal in cautious trading as traders digested news of the impact of Omicron variant of COVID-19.

  3. The USD/CHF moved to test a swing area between 0.925 and 0.917. The high of that area was reached on Tuesday and sellers leaned. The price rotated down.

USDCHF

 

[USDJPY]

Important Levels to Watch for Today:

-        Resistance line of 114.058 and 114.316.

-        Support line of 113.222 and 112.964.

Commentary/ Reason:                                        

  1. The Japanese yen was relatively flat, changing hands at 113.660 per dollar.

  2. The USD/JPY pair provided positive trades yesterday to test the key resistance 114.00, which represents one of the trend keys besides 113.22 support, as we are waiting to surpass one of these levels to detect the next destination clearly. Intraday bias in USD/JPY remains neutral at this point.

USDJPY

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.33529 and 1.33880.

-        Support line of 1.32391 and 1.32040.

Commentary/ Reason:

  1. The pound rebounded a little to last trade at $1.32093, though still very much in a downtrend.   

  2. Sterling fell to a one-year low of $1.31638 overnight with the announcement of the tighter COVID-19 rules.

  3. The dollar however, failed to extend further gains though new COVID-19 restrictions in Britain hurt the sterling. British Prime Minister Boris Johnson on Wednesday announced a tougher COVID-19 restrictions in England, ordering people to work from home, wear masks in public places and use vaccine passes. The spread of the new Omicron variant of the coronavirus also will likely forced the BoE to delay its decision to hike interest rates.

GBPUSD