INTRADAY TECHNICAL ANALYSIS 5 JULY (observation as of 06:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18848 and 1.19032.

-        Support line of 1.18252 and 1.18068.

Commentary/ Reason:

  1. The euro was at 0.09% lower against the dollar, traded at $1.18539, hovering just above Friday's 3-month low of $1.18074.

  2. Intraday bias in EUR/USD remains neutral at this point.

  3. The dollar trade expected to be thinned today, as the U.S. will celebrate Independence Day, with all local markets closed on Monday. During the European session, Markit will publish the final versions of its Services and Composite PMIs for the Union, while the EU will release July Sentix Investor Confidence, foreseen at 30 from 28.1 in the previous month.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92302 and 0.92483.

-        Support line of 0.90940 and 0.91759.

Commentary/ Reason:

  1. The dollar bounced back against the Swiss franc after slumped 0.5% on Friday last week.

  2. On Monday, the dollar added 0.17% to trade at 0.92210.

  3. The dollar saw weakness Friday on long liquidation pressure ahead of the holiday weekend after the sharp run-up seen in the past three weeks.  The dollar was also undercut by the rally in T-note prices that followed the release of the unemployment report.

  4. The dollar recovered as the U.S. payroll report was more fully assessed.

  5. Today, in a case where USD/CHF bulls manage to cross the 0.924 resistance, early March tops near 0.9375 and the yearly peak of 0.9472 will be in the spotlight.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39139 and 1.39637.

-        Support line of 1.37527 and 1.37029.

Commentary/ Reason:

  1. Sterling was steady on Monday at $1.38317.

  2. From a fundamental standpoint, the positives are with the EU granting a delay to the chilled meat ban in Northern Ireland, which has helped to calm fears over trade tensions.

  3. While investors remain concerned on the resurgent number of COVID-19 cases, the British pound were supported by expectation of economic reopening.

  4. England final lockdown restrictions is looking very positive, Housing Secretary Robert Jenrick said on Sunday. The lockdown is due to be lifted on July 19, thanks to the success of the vaccination programme.

  5. The UK had a light macroeconomic calendar last week and has little to offer in the days to come. On Monday, Markit will publish the final version of the June Services PMI, foreseen unchanged at 61.7.

GBPUSD