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INTRADAY TECHNICAL ANALYSIS 2 AUGUST (observation as of 06:50 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18748 and 1.18844.
- Support line of 1.18556 and 1.18460.
Commentary/ Reason:
The dollar was little changed at $1.18685 per euro on Monday.
The surprisingly strong EU economic data held the euro away from its July low of $1.175. The upbeat German Retail Sales on Monday came in at 6.2% in June versus -2.4% expected.
Intraday bias in EUR/USD remains neutral for the moment. Upward pressure has eased, as it remains to be seen whether there is enough bullish conviction to make the challenge. The current movement is viewed as part of a consolidation phase. In other words, EUR is likely to trade sideways for today.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90759 and 0.90931.
- Support line of 0.90415 and 0.90214.
Commentary/ Reason:
The dollar traded higher against the Swiss franc, rose 0.13% to 0.90637, although still hovers around its 1-month low from Friday.
The greenback remained sideways as traders waited for more economic data releases this week.
USD/CHF is accumulating on the downside as bearish sentiment dominates price action that weighed on the greenback.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39405 and 1.39632.
- Support line of 1.38495 and 1.38268.
Commentary/ Reason:
Sterling was also little changed at $1.39051, with a policy announcement by the Bank of England due on Thursday.
Sterling has been riding higher with re-opening optimism. Traders have been encouraged by early signs that England's end to most COVID restrictions has not been a disaster, with the rolling averages are heading lower.
The GBP/USD pair price action has turned bearish with a trajectory towards the 1.384 support level, after the pair failed to test the 1.40 resistance level last week. The current trading range represents a consolidation zone for the pair.
