INTRADAY TECHNICAL ANALYSIS 24 JUNE (observation as of 07:20 UTC)


Important Levels to Watch for:

-        Resistance line of 1.06309 and 1.06832.

-        Support line of 1.04615 and 1.04092.

Commentary/ Reason:

  1. The euro was fairly steady at $1.05365 per dollar and heading for around 0.30% gains for the week.

  2. The single currency is being pressured by disappointing German and French PMI figures, which signalled a struggling economy. The weak factory data reduced bets for European Central Bank tightening.

  3. Though gains in the dollar were limited by weaker-than-expected U.S. economic data and lower T-note yields.

  4. The EUR/USD pair stuck in sideway trend represented by 1.0461 support and 1.0630 resistance. Neutrality approach remain until the price manages to surpass one of these levels and detect its next destination clearly.

  5. Breaking the mentioned support will push the price to decline to negative target at $1.0409, while breaching the resistance represents the key to resume the intraday recovery trip that its next main target located at 1.0683.




Important Levels to Watch for:

-        Resistance line of 0.96938 and 0.97353.

-        Support line of 0.95593 and 0.95177.

Commentary/ Reason:

  1. The dollar was flat against the Swiss franc on Friday, to trade at 0.95980.

  2. The Swiss franc extends its weekly gains to almost 1%, as shown by the USD/CHF falling from weekly highs above 0.9700.

  3. Risk aversion pushed equities to negative territory and gave a fresh impulse to safe-haven assets, boosting the franc.

  4. The USD/CHF pair keeps the bearish trend scenario valid on the intraday and short-term basis, supported by the negative pressure formed by the EMA50, waiting to resume the negative trades that target 0.9559 as a next main station. The expected trading range for today is between 0.9559 support and 0.9693 resistance.




Important Levels to Watch for Today:

-        Resistance line of 136.328 and 137.067.

-        Support line of 133.939 and 133.201.

Commentary/ Reason:                                        

  1. The dollar eased 0.37% to 134.449 per yen. For the week, it was just slightly lower, though set to snap a three-week, 6.19% winning streak.

  2. The battered yen has steadied this week and drew a support on Friday from Japanese inflation topping the Bank of Japan's 2% target for a second straight month, putting some more pressure on its ultra-easy policy stance.

  3. The USD/JPY fell back from a new 24-year high after a fall in T-note yields sparked short-covering in the yen. The 10-year Treasury yields sliding to an almost two-week low overnight.

  4. The USD/JPY pair is now with new bearish bias that hints heading to surpass 133.939 level and achieve more bearish correction, noting that our next negative targets followed by 133.201.




Important Levels to Watch for:

-        Resistance line of 1.24003 and 1.25543.

-        Support line of 1.20293 and 1.19383.

Commentary/ Reason:

  1. Sterling rebounded higher to $1.2669, putting it on track for a 0.3% weekly rise that would end a three-week losing run.

  2. The PMI data published by the S&P Global revealed on Thursday that the business activity in the UK's manufacturing and service sectors continued to expand at a relatively healthy pace in early June.

  3. The Bank of England last week implemented a fifth consecutive hike to interest rates, though stopped short of the aggressive hikes seen in the U.S. and Switzerland, as it looks to tame inflation without compounding the current economic slowdown.

  4. Although the British pound erased a portion of its daily losses after these data, it could find it difficult to gather further bullish momentum. The GBP/USD pair keeps its stability above 1.2029 support level it, which keeps our bullish overview valid and active for the upcoming period, waiting to achieve our positive targets that start at 1.2400 and extend to 1.2554.

  5. Breaking 1.2029 and holding below it will press on the price to turn to decline and achieve negative targets that reach 1.1938.

  6. European Central Bank and Federal Reserve speakers will be watched closely later in the day, as will British retail sales data and German business confidence.