INTRADAY TECHNICAL ANALYSIS 1 JUNE (observation as of 08:00 UTC)


Important Levels to Watch for:

-        Resistance line of 1.07770 and 1.08459.

-        Support line of 1.06392 and 1.05703.

Commentary/ Reason:

  1. The euro was flat, last traded at $1.07313, as it continues its retreat from the more-than-one-month peak of $1.07867 hit on Monday after the European Central Bank shifted to a more hawkish posture.

  2. Strength in the dollar weighed on EUR/USD. The U.S. dollar strengthened across the board as Treasury yields climbed and worries over a further acceleration in global inflation depressed investors' risk appetite.

  3. Also, reduced purchasing power for the euro undercut EUR/USD after Eurozone May consumer prices rose more than expected at a record pace.  Higher Eurozone government bond yields are limiting the downside in EUR/USD after the 10-year German bund yield climbed to a 3-week high Tuesday.

  4. The EUR/USD pair shows new negative trades now, to head towards potential test to the key support 1.0640, while the EMA50 continues to support the price from below and protect the recently suggested positive scenario, waiting to resume the positive trades and breach 1.0777 to rally towards our next main target that reaches 1.0845.

  5. Bullish trend will remain valid and active unless breaking 1.0640 and holding with a daily close below it.




Important Levels to Watch for:

-        Resistance line of 0.96499 and 0.96997.

-        Support line of 0.95503 and 0.95005.

Commentary/ Reason:

  1. The dollar rose 0.10% to 0.95998 on Wednesday. The greenback rose against the Swiss franc, though a risk-on market mood keeps the greenback on the defensive.

  2. The market sentiment remains negative, as shown by global equities falling.

  3. In the meantime, the greenback holds its ground, underpinned by US Treasury yields.

  4. The USD/CHF pair continues to move within sideways track, keeping its stability below 0.9650 level, to keep the bearish trend scenario active on the intraday and short-term basis, waiting to test 0.9550 as a next target.

  5. The EMA50 continues to support the suggested bearish wave, which will remain valid unless the price rallied to breach 0.9650 and hold above it.




Important Levels to Watch for Today:

-        Resistance line of 129.732 and 131.094.

-        Support line of 127.008 and 125.646.

Commentary/ Reason:                                        

  1. The greenback climbed 0.62% to 129.437 yen, and earlier touched 129.185 for the first time since May 18.

  2. The dollar earlier touched 129.542, a two-week high, lifted by higher Treasury yields amid renewed concerns over rising inflation around the world and the possibility of a slowdown in economic growth.

  3. Japanese economic concerns meanwhile are weighing on the yen after Japan Apr industrial production fell more than expected. Dovish comments from BOJ Governor Kuroda also were bearish for the yen when he said the BOJ would support the economy with “persistent” easing. A slowdown in PMI data also weighed.

  4. The USD/JPY pair shows additional positive trades to touch the latest resistance line at 129.732 level now, reinforcing the expectations of continuing the bullish trend, which followed by 131.094 levels as next main stations.

  5. Stochastic current negativity might cause some temporary sideways fluctuation before resuming the expected rise, which will remain valid conditioned by the price stability above 127.00.




Important Levels to Watch for:

-        Resistance line of 1.26600 and 1.27290.

-        Support line of 1.25220 and 1.24530.

Commentary/ Reason:

  1. Sterling edged down slightly to $1.25920.

  2. The pound has lost its traction, off its 1-month high recorded Friday last week but managed to hover around the 1.2600 level.

  3. With U.S bond markets returning to action following the three-day weekend, the benchmark 10-year US Treasury bond yield pushed higher earlier in the day, helping the dollar gather strength.

  4. Britain's murky growth outlook and uncertain interest rate trajectory meanwhile continued to weigh on sentiment.

  5. The GBP/USD pair attempted to break 1.2660 but it kept its stability above it, to keep the bullish trend scenario active for the upcoming period, supported by the EMA50 that continues to carry the price from below, waiting to head towards 1.2729 as a next target.

  6. Breaking 1.2522 and holding below it might stop the suggested positive scenario and press on the price to return to the main bearish track again