INTRADAY TECHNICAL ANALYSIS 13 SEPTEMBER (observation as of 07:00 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18855 and 1.19183.

-        Support line of 1.17792 and 1.17463.

Commentary/ Reason:

  1. The euro has faded back to $1.17885, breaking support under $1.1800 to record a new 2-week low.

  2. Higher T-note yields supported the dollar along with weakness in stocks, which boosted the liquidity demand for the dollar.

  3. The euro also moved lower on Friday’s comments from ECB President Lagarde, who said the ECB is “determined” to provide the necessary support as the Eurozone economy is not out of the woods yet. Nonetheless, a tightening of Eurozone monetary policy is edging closer and that means any stronger than expected activity or inflation figures are more likely to boost the Euro than weaker than predicted data are to weaken it.

  4. U.S. consumer price data on Tuesday is the next major focus for FX traders, along with U.S. retail sales and production figures later in the week as they frame the economy’s progress in the lead-up to the Federal Reserve’s Sept. 21-22 meeting.

  5. The EUR/USD has begun to float back towards the 1.177 support level as buyers appear to have lost steam after the most recent rally was rejected at the 1.188 resistance line.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92224 and 0.92479.

-        Support line of 0.91399 and 0.91144.

Commentary/ Reason:

  1. The dollar rose 0.30% against the safe haven Swiss franc, at 0.92012 franc.

  2. The USD/CHF pair still inside the sideways range that appears on the chart, which its lines represented by 0.9139 support and 0.9222 resistance, to continue suggesting the sideways move until surpassing one of these levels to detect the next targets clearly.

              USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38803 and 1.39190.

-        Support line of 1.37550 and 1.37163.

Commentary/ Reason:

  1. Sterling fell 0.15% to $1.38066 on Monday.

  2. The greenback gaining ground as pullback in U.S. yields and weakness in stock market dampened risk sentiment.

  3. The GBP/USD pair spiked towards the descending trendline in the last trading session, yet a pullback indicates that bullish momentum may be insufficient to drive a break.

  4. Should the pair sellers manage to conquer the 1.375 level, the monthly low around 1.371 may entertain them ahead of July’s bottom surrounding 1.3570.

  5. Meanwhile, the stated resistance line near 1.388 guards the quote’s immediate upside ahead of the monthly top close to 1.390.

GBPUSD