INTRADAY TECHNICAL ANALYSIS 26 JULY (observation as of 07:00 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18322 and 1.18607.

-        Support line of 1.17402 and 1.17117.

Commentary/ Reason:

  1. The euro rose 0.10% to trade at $1.17788 on Monday, but still weighted and hovering just above last week’s $1.17518, a level not seen since early April.

  2. The euro dropped in part because European yields have fallen even further amid expectations of continued massive bond buying by the ECB.

  3. The dollar meanwhile benefiting from a safe-haven bid on fears a surge in infections of the fast-spreading Delta variant could derail the global recovery.

  4. The financial markets now looked ahead to the FOMC meeting this week for clues on the timing of stimulus tapering.

  5. The EUR/USD is hovering back towards the 1.174 support level as buyers appear to lack the appetite to facilitate a rally. Bearish momentum is weak therefore a break of the recent floor level seems unlikely.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92099 and 0.92274.

-        Support line of 0.91749 and 0.91574.

Commentary/ Reason:

  1. The pair was steady at 0.92878 franc on Monday afternoon.

  2. The pair seems to be alternating between losses and gains in the several recent sessions, with the market action waited for more economic releases scheduled later this week, including the FOMC rate decision on Wednesday.

  3. The dollar is expected to strengthen this week on the possibility of the Fed moving a step closer to tapering at the conclusion of its two-day policy meeting on Wednesday.

  4. A modest recovery in the global equity markets meanwhile undermined the safe-haven Swiss franc, which extended some support to the USD/CHF pair.

  5. USD/CHF stays in range of 0.915-922 with the intraday bias remains neutral.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38102 and 1.38480.

-        Support line of 1.36878 and 1.36500.

Commentary/ Reason:

  1. The British pound changed hands at $1.37526, little changed from last week, when it bounced as high as $1.37867, from an almost 6-month low of $1.35718 touched just two days earlier.

  2. The sterling was buoyed by the recovery in risk sentiment, despite rising Delta variant cases rampaging in Britain and confusion about the lifting of restrictions.

  3. The GBP/USD pair is climbing back towards the 1.381 resistance line after a break of the 1.368 price level. Sellers have returned in earlier trading which has stalled the would-be rally. The pair may once again consolidate at the 1.380 support level.

GBPUSD