INTRADAY TECHNICAL ANALYSIS 27 JUNE (observation as of 08:10 UTC)

[EURUSD]

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 rose 0.23% to $1.05814 on Monday.

  2. It found support in a choppy Asia session, as a sharp rally in stocks curbed liquidity demand for the dollar. 

  3. The dollar remained under pressure alongside U.S. Treasury yields. Losses in the dollar, however, were limited, as the greenback benefiting from a bid for safety as investors worried rising interest rates and softening economic data could signal a global recession is on the horizon.

  4. The bullish bias is suggested for today, noting that breaking 1.0461 followed by 1.0409 levels will stop the positive scenario and press on the price to turn to decline.

  5. The EUR/USD pair closed last Friday above 1.0550 level, to activate the bullish trend scenario on the intraday basis, organized inside the bullish channel that appears on the chart, waiting for positive trades in the upcoming sessions that target 1.0630 areas mainly.

EURUSD

              

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.96431 and 0.96853.

-        Support line of 0.95065 and 0.94643.

Commentary/ Reason:

  1. The dollar slipped 0.18% against the Swiss franc on Monday, to trade at 0.95649.

  2. The USD/CHF remains pressured, declining for the last two weeks. In doing so, eyes to refresh the two-month low.

  3. The safe haven gained ground as investors turned nervous again about global growth prospects.

  4. Investors also continue to assess fresh cues from top central banks about their monetary policy plans, especially from the U.S. Fed.

  5. The USD/CHF pair supports the chances of continuing the decline in the upcoming sessions, noting that breaking the mentioned level will push the price to 0.9506 as a next negative target.

  6. The EMA50 continues to press negatively on the price, to suggest more bearish bias on the intraday and short-term basis unless breaching 0.9643 and holding above it.

USDCHF

 

[USDJPY]

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 beaten-down yen steadied to 135.050 per dollar, strengthening from levels above 136 against the greenback last week.

  2. The dollar and Japanese yen both found support in a choppy Asia session on Monday, benefiting from a bid for safety as investors worried rising interest rates and softening economic data could signal a global recession is on the horizon.

  3. The fall in T-note yields today however, sparked short-covering in the yen. Markets have become increasingly concerned that the Fed's commitment to quelling red-hot inflation will spur a recession. Those worries sent the 10-year Treasury yields remains at around the two-week low.

  4. The USD/JPY pair fluctuates, noticing that stochastic provides negative signals, to probably support the chances of breaking the support level and open the way to head towards our next correctional target that reaches 133.939.

  5. Bearish trend scenario remain active conditioned by the price stability below 136.328.

USDJPY

 

[GBPUSD]

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 ticked up 0.35% to $1.23134.

  2. A sharp rally in stocks curbed liquidity demand for the dollar. 

  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. The rate rises prompted gilts to sell and sterling to rise on bets that future hikes would come thick and fast.

  5. The GBP/USD pair continues to fluctuate around the EMA50 and didn’t show any strong move in the previous sessions, thus, no change to the bullish trend scenario that depends on the price stability above 1.24003, noting that stochastic gathers the positive momentum to support the expectations to rise, reminding you that our main targets to extend to 1.25543.

  6. The expected trading range for today is between 1.2029 support and 1.2400 resistance.

GBPUSD