INTRADAY TECHNICAL ANALYSIS 2 SEPTEMBER (observation as of 06:05 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18703 and 1.18953.

-        Support line of 1.17896 and 1.17647.

Commentary/ Reason:

  1. The euro also reached its highest since early August at $1.18567 on Wednesday and was holding steady at $1.18398 on Thursday.

  2. A perceived tilt towards being less dovish by the ECB, and

  3. The single currency was aided by hawkish comments from Bundesbank President Jens Weidmann who cautioned against inflation risks and called for a slowdown in bond buying by the ECB. Government bond yields across the Euro area touched their highest levels in around six weeks, pushed up by unease over the future pace of ECB bond purchases.

  4. The dollar meanwhile was pressured by softer-than-expected U.S. labour data as traders awaited a fuller jobs report, which is expected to guide the timing of the Federal Reserve’s pullback in bond buying.

  5. The EUR/USD continues to climb away from the 1.1789 resistance line, keeping the 1.187 line in sight. Bullish momentum appears to ebb and flow with sellers still active into the move and hence, buyers’ conviction will be tested. Momentum indicators are bullish.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91942 and 0.92157.

-        Support line of 0.91245 and 0.91029.

Commentary/ Reason:

  1. The dollar rose against the Swiss franc on Thursday, to trade at 0.91537 franc.

  2. The USD/CHF pair continues to fluctuate within the sideways range, stuck between 0.912 support and 0.919 resistance, to keep the sideways range dominant on the intraday trades, waiting to surpass one of these levels to detect the next destination clearly.

  3. Breaching the mentioned resistance will lead the price to achieve new gains that start at 0.921, while breaking the support will press on the price to decline towards 0.910, around the weekly low.

  4. Friday non-farm payroll report is awaited by traders. Fed’s Powell suggested an improvement in the labour market is one major remaining prerequisite for the Fed to taper its asset purchases.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38092 and 1.38337.

-        Support line of 1.37231 and 1.36997.

Commentary/ Reason:

  1. Sterling edged higher on the softer dollar but found the going heavy into resistance around $1.380. The pair last sat at $1.37816.

  2. The pound opened higher against the U.S. dollar on Thursday as investors remained cautious ahead of the U.S. economic data disclosure. The dollar has been on the back foot since even before then as doubts about the tapering timeline crept in.

  3. Investors are likely content to play the range in the major currency space while waiting for the US non-farm payroll data which is due to be released tomorrow.

GBPUSD