INTRADAY TECHNICAL ANALYSIS 26 AUGUST (observation as of 05:40 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.17878 and 1.18071.

-        Support line of 1.17254 and 1.17061.

Commentary/ Reason:

  1. Against the euro, the dollar was little changed at $1.17661 on Thursday, after touching a 1-week low of $1.17740 the previous day.

  2. Investors have turned more positive on the outlook since the U.S. FDA fully approved the COVID-19 vaccine made by Pfizer and BioNTech on Monday, in a move that could accelerate U.S. inoculations.

  3. Full approval of the Moderna vaccine could follow within weeks, and on Tuesday, Dr. Anthony Fauci, the top U.S. infectious disease expert, said COVID-19 could be under control by early next year.

  4. The euro also jump on upbeat comments from ECB Vice President Guindos, who said that "all the leading indicators that we have are positive for the third quarter" and pre-pandemic GDP levels in the Eurozone are expected to be reached at the end of this year.

  5. Political uncertainty in Germany meanwhile might limits euro advancement.

  6. A potential surge would test the resistance of round exchange rate levels at 1.1787, before reaching the resistance of the around 2-week high at 1.1807.

  7. On the other hand, a decline could look for support of weekly low at 1.1725. Below these levels, the 1.170 mark together with a 61.80% Fibonacci retracement level would provide support.

  8. Markets eagerly await the Federal Reserve's Jackson Hole event later in the week, with Chair Jerome Powell's speech on Friday being the highlight.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91622 and 0.91775.

-        Support line of 0.91126 and 0.90973.

Commentary/ Reason:

  1. The dollar rose 0.16% against the Swiss franc on Thursday, traded at 0.91457 franc.

  2. The risk-on impulse undermined the safe-haven Swiss franc and extended some support for the greenback.

  3. The dollar hangs as investors repositioned themselves ahead of the U.S. Federal Reserve’s Jackson Hole Economic Policy Symposium, an annual platform where the central bank could signal its monetary policy stance. Easing tapering fears continued weighing on the dollar and capped the upside for the major.

  4. The USD/CHF pair begins today positively to move higher, before faces good resistance, which supports the chances of resuming the expected bearish bias for the upcoming period, at 0.911 mainly.

  5. On the other hand, breaching 0.9162 will lead the price to achieve additional rises that target 0.9177.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37865 and 1.38140.

-        Support line of 1.36975 and 1.36700.

Commentary/ Reason:

  1. Sterling held at $1.37556, little moved from opening today. Since early of this week trading, the GBP/USD has continued to trade between the 1.3700 and 1.3760 levels.

  2. The pound was bolstered by the positive market sentiment, coupled with the weaker greenback performance. The greenback has come under pressure due to a mix of profit-taking on dollar shorts and to signs that the U.S. Delta COVID-19 wave is peaking.

  3. Tensions are mounting toward Fed Chair Jerome Powell's speech in the virtual Jackson Hole Symposium. While he is expected to refrain from hinting at tapering the bank's bond purchase program, such a move could come sooner than later. Signals that Fed officials viewed a taper this year most likely will helped buoy the dollar.

  4. A breaking of the resistance of the 1.3786 level could result in a surge to the 1.3810 mark.

  5. However, a decline below the 1.396 level could result in another decline to the 1.3670 mark.

GBPUSD