INTRADAY TECHNICAL ANALYSIS 15 SEPTEMBER (observation as of 06:20 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.18450 and 1.18634.

-        Support line of 1.17857 and 1.17674.

Commentary/ Reason:

  1. The euro was flat against the dollar at $1.18052 on Wednesday.

  2. The euro gave up an early advance and moved slightly lower, as the fall in German bund yields weighed. The 10-year German bund yield fell back from a 2-month high of -0.304% and dropped to -0.340%, which weakened the euro’s interest rate differentials.

  3. The dollar meanwhile lost its strength after Core CPI came in lower than expected. This may cause the U.S. Fed to take a little longer to start the tapering process, which could be positive for the greenback.

  4. Tapering tends to benefit the dollar as it suggests the Fed is one step closer toward tighter monetary policy. It also means the central bank will be buying fewer debt assets, effectively reducing the number of dollars in circulation.

  5. European Central Bank Chief Economist Philip Lane speaks at the IMFS webinar later today.

  6. Following the upsurge seen in the early on, EUR/USD returned lower. Moreover, the RSI indicator on the same chart failed to hold above 50, suggesting that bulls are having a tough time staying in control of the action. The bearish pressure could increase with a close below 1.1785, and next at 1.1767, a weekly low.

    EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92342 and 0.92544.

-        Support line of 0.91686 and 0.91484.

Commentary/ Reason:

  1. The dollar remains muted against the safe haven Swiss franc on Wednesday, traded at 0.92017 franc.

  2. The Swiss franc holds some ground on its safe-haven appeal amid risk aversion on the rapid spread of the Delta variant of the coronavirus and its impact on global economic recovery.

  3. Furthermore, strong economic data fuels the upside in the franc as Swiss producer and import prices jumped 4.4% in August on yearly basis. The Unemployment Rate fell to an 18-month low at 2.7% in August, mildly below the market consensus of 2.8%.

  4. Compared to the U.S., the CPI data came below expectations.

USDCHF

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39095 and 1.39523.

-        Support line of 1.37711 and 1.37283.

Commentary/ Reason:

  1. Sterling rose against the dollar on Wednesday, last bought at $1.38175.

  2. A smaller-than-expected increase in the U.S. Aug CPI pushed T-note yields lower and weighed on the dollar.

  3. On Tuesday, the GBP/USD currency exchange rate surged and touched the 1.3912. The zone above this level has kept the currency pair down throughout September.

  4. If the pair manages to break the resistance of the 1.390 zone, the rate could reach for above these levels, the resistance at 1.3952.

  5. On the other hand, another bounces off from the resistance zone could look for support at 1.377 and 1.372.

GBPUSD