INTRADAY TECHNICAL ANALYSIS 22 NOVEMBER (observation as of 06:30 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.14157 and 1.14947.

-        Support line of 1.12577 and 1.11787.

Commentary/ Reason:

  1. The safe-haven U.S. dollar traded close to a 16-month high to the euro on Monday on growing anxiety over the impact of surging COVID-19 infections in Europe.

  2. The pair last traded at $1.12772, approaching its lowest since July of last year at $1.12498 that it reached Friday.

  3. The euro was under pressure as the surge in COVID-19 infections in Europe prompted Austria to impose a nationwide lockdown.  The news sent the 10-year German bund yield down to a 2-month low at -0.343%, which is negative for the euro.

  4. Comments on Friday from ECB President Lagarde also were dovish for ECB policy and bearish for EUR/USD when she said she is "confident" that inflation pressures will ease over time and that the ECB shouldn't tighten monetary policy too soon.

  5. The EUR/USD has sunk lower despite a recent bullish reversal attempt. Buying sentiment was insufficient to sustain the move. Sellers have returned to the pair to a new low at the 1.124 support line as the longer-term bearish sentiment remains intact.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.93326 and 0.93639.

-        Support line of 0.92312 and 0.91999.

Commentary/ Reason:

  1. The dollar traded higher against the Swiss franc on Monday, rose 0.10% to trade at 0.92946.

  2. Hawkish comments from several U.S. central bankers aided the dollar. Federal Reserve officials Richard Clarida and Christopher Waller on Friday suggested that a faster pace of stimulus tapering may be appropriate amid a quickening recovery and heated inflation.

  3. On the other hand, the franc holds on to its safe-haven appeal, as investors see the currency as a safe haven investment amid market uncertainties due to rising COVID-19 cases in Europe.

  4. The USD/CHF pair bounced bullishly off the 0.923 support level in the previous sessions, to resume the bullish track and head towards our first waited positive target at 0.933. USD/CHF surged to as high as 0.9328 last week but retreated since then.

USDCHF

 

[USDJPY]

Important Levels to Watch for Today:

-        Resistance line of 114.992 and 115.389.

-        Support line of 113.707 and 113.309.

Commentary/ Reason:                                        

  1. The dollar was rose 0.15% against fellow safe haven the yen, changing hands at 114.149 yen per dollar, but stays in the middle of its range over the past week and a half.

  2. USD/JPY jumps back on the bids in tandem with the U.S. Treasury yields. The pair slumped to a one-week low on Friday last week as decline in T-note yields weighed on the USD/JPY. Expectations that the Fed could offer any hints on the timing of a rate hike fuel a renewed upside in the yields, in turn, benefiting the dollar.

  3. The greenback also takes advantage of the prevalent risk-off market profile, courtesy of the concerns about European COVID-19 curbs.

  4. Meanwhile, investors digest the latest comments from Japan on a potential oil reserves release. The broader market sentiment is expected to lead the way going forward.

USDJPY

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.35220 and 1.35610.

-        Support line of 1.33960 and 1.33570.

Commentary/ Reason:

  1. The sterling was largely flat against the U.S. dollar on Monday, last bought at $1.34413.

  2. The GBP/USD pair continues to oscillate lower with waning appetite from buyers to facilitate another bullish run. Price action is once again being led by sellers and another test of the 1.339 support line is on the cards.

GBPUSD