INTRADAY TECHNICAL ANALYSIS MAY 10th (observation as of  05:30 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.09852

-        Support line of 1. 09423

Commentary/ Reason:

1.      The price was on a strong uptrend on the dollar weakness but eventually dropped lower to its support level before rebounding.

2.      The Euro is losing strength after US debt ceiling stays unresolved after recent banking crisis saw the dollar plummeted, but it is already recovering.

3.      There is inflation reading coming in today (CPI) and investor are warned to take caution as it will affect the volatility of currency.

4.      The price is expected to trade below but have some room to recover to either resistance level at 1.09852 or 1.10112 but it is still a seller’s market even if the upside potential is real.

5.      If the price break below support at 1.09423 without rebounding higher at Fibonacci 61.8% before continuing, the price is expected to fall lower. It is sure to happen if CPI reported lower than current consensus.

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89126

-        Support line of 0.88963

Commentary/ Reason:

1.      The pair have been in volatile trading that has seen the price increased exponentially and retraced strongly before stabilizing into a large range consolidation.

2.      The price is now muted in anticipation of significant macro data from the US.

3.      The CPI data from the US are expected to be released today and the consensus is at 0.4%, the same as last month but putting it below current figure YoY.

4.      The price is expected to move further downward but there is a small chance of rebound at if the price does not retest support at 0.88963 and break below as its in sideway price action or inside bar.

5.      Technical indicator is showing a buying opportunity across the board but STOCHRSI is warning that the price is overbought and might reverse to the downside in the near future.

[USDJPY]

Important Levels to Watch for:

-        Resistance line of 135.703

-        Support line of 135.133

Commentary/ Reason:

1.      The pair were previously on a steep downtrend but recovered some of its value steadily and almost in sideways.

2.      The price is now on a short-term uptrend that have entered a selling range between resistance 135.703 and 135.396.

3.      The Japan current account is expected to be higher while CPI from the US is expected to be slightly lower YoY.

4.      The price is expected to continue to break resistance although weakness from the USD could continue if the government decided to default but they are more likely to increase debt ceiling.

5.      The price could move higher to 136.382 if CPI printed lower number indicating improving condition and less necessity for the Feds to keep hiking interest rate. The technical indicator is blaring with buy signals which is a good sign for buyers.

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.25335

-        Support line of 1.25102

Commentary/ Reason:

1.      The pair have been on a strong uptrend but the price recently broke out of parallel channel bound and since move in an uncertain direction.

2.      The price now is now rebounded after the breakage, recovering about 70% of its value and are about to decide whether to create a lower high or break above.

3.      There is no significant macro data from the UK and US CPI data is mostly in focus to be the main driver of volatility in the market.

4.      The price is expected to retrace once it hit resistance level at 1.26530 and fell slightly before deciding its next direction which most likely be a downtrend.

5.      However, majority of technical indicator is advocating for a buy or uptrend position which could push the price higher to test resistance level 1.26687 before RSI is considered overbought.