INTRADAY TECHNICAL ANALYSIS 14 JUNE (observation as of 06:45 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21187 and 1.21299.
- Support line of 1.20963 and 1.20851.
Commentary/ Reason:
The euro traded at $1.20970, not far from 1-month low of $1.20927 recorded on Friday.
The euro has lost steam after the ECB last week showed no willingness to reduce its stimulus. The 1.85 trillion euro PEPP is scheduled to last at least until March 31 or until the crisis phase of the pandemic is over.
The greenback, meanwhile, were traded cautious ahead of the Fed meeting that runs two days to Wednesday.
The EUR/USD has pulled back to break the ascending trendline as selling pressure has risen sharply in recent trading. A new support level created at the 1-month low price line and further at 1.2085 price line. Momentum indicators reflect the bearish sentiment with clear downward trajectories.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89936 and 0.90080.
- Support line of 0.89648 and 0.89504.
Commentary/ Reason:
The dollar traded 0.16% higher to 0.89922 against the Swiss franc, distancing itself from last week’s slump.
The dollar was positioned to be more advantageous and supported as investors returned to safe-haven currencies due to cautious sentiment on the global market.
Investors now looked to the FOMC meeting on Wednesday for fresh direction.
Swiss franc could advance against the greenback this week if policy is to be kept easy.
Meanwhile a stronger-than-expected readings in U.S. industrial production and retail sales data could potentially push the U.S. Treasury yields higher, prompting the franc to trade lower against the greenback.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.42055 and 1.42463.
- Support line of 1.40732 and 1.40323.
Commentary/ Reason:
The British pound changed hands at $1.41133, near the lower end of its trading range over the past month, ahead of British Prime Minister Boris Johnson's announcement on Monday on whether its planned lifting of coronavirus restrictions can go ahead as scheduled on June 21.
Hopes of ending the curbs hung in the balance as data showed a further rise in cases of the rapidly spreading Delta variant, which was identified first in India. PM Johnson is reportedly set to delay lockdown lifting to July 19, from the original June 21.
The pound sterling also weighted in term of deterioration of relations between the EU and the UK. Both accusing the other of acting in bad faith over part of their Brexit divorce deal that covers border issues with Northern Ireland.
Meanwhile the dollar clung to carry over from last week’s positive economic data, as the U.S. consumer sentiment index rose.
The GBP/USD pair remains glued rangebound. Previous selling activity has been thwarted by residual bullish sentiment. Conviction is not currently strong enough to drive the break. Momentum indicators have flattened in bullish territory.
