INTRADAY TECHNICAL ANALYSIS 30 JUNE (observation as of 05:15 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19352 and 1.19558.
- Support line of 1.18684 and 1.18478.
Commentary/ Reason:
The euro was last at $1.18998, up slightly from opening today, after fell 0.22% overnight, as it edged back toward the 2½-month low of $1.8474 touched on June 18.
The euro was weighted by comments late Monday from ECB Vice President Guindos that fuelled speculation the ECB might maintain its euro-negative stimulus measures.
The dollar found safe-haven support as concern grows that more countries will need to reimpose pandemic lockdowns as the dangerous Delta COVID-19 variant spreads throughout the world.
Signs of a tight labour market kept many investors fretting over wage-driven price pressures. Friday's payroll data is a key focus - with economists expecting an increase of 675,000 jobs. Some reckoning on the dollar falling back into a downtrend if the jobs data passes without surprise.
The EUR/USD has flattened mid-range between the 1.186 and 1.195 price levels, though noting the return of some buyers in early trading. The pair could be consolidating within the current trading range.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92392 and 0.92580.
- Support line of 0.91784 and 0.91596.
Commentary/ Reason:
The Swiss franc opened slightly lower against the U.S. dollar today as demand for goods and services in the U.S. boosted the greenback. The dollar as safe-haven currency also benefited from demand driven by concerns over the spread of the Delta virus strain.
The dollar advanced against the Swiss franc, added 0.1% for the third consecutive days of gain to trade at 0.92126 on Wednesday.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38866 and 1.39130.
- Support line of 1.38014 and 1.37750.
Commentary/ Reason:
Sterling was last trading at $1.38556, up 0.19% on the day.
The pound remains positives around a 1-week low flashed the previous day as Brexit headlines have been positive of late. Tensions between the EU and the UK over the Northern Ireland Protocol are easing.
While the Brexit headlines keep risk-taking buyers hopeful, the COVID-19 updates probe the bulls. The UK’s latest figures suggest 20,479 new cases versus 22,868 a day earlier on Tuesday while the death toll rose from 3 to 23 during the stated period.
The subsequent decline in risk appetite has helped strengthen the dollar. Also favouring the greenback could be the cautious sentiment ahead of Friday’s US Nonfarm Payrolls.
Meanwhile the U.S. is showing improvement in the pandemic after the 7-day average of new infections last Wednesday fell to a new 15-month low of 11,351.
Moving on, the print of the UK’s Q1 GDP, expected to confirm -1.5% QoQ forecasts, may offer immediate reaction to GBP/USD prices, mostly upside on positive surprises.
GBP/USD looks set to continue in consolidation as early trading highlights a lack of appetite from sellers to drive price action. A move towards the 1.380 support level has resorted in the return of buyers.
