Important Levels to Watch for:

-        Resistance line of 1.03925 and 1.04561.

-        Support line of 1.01864 and 1.01227.

Commentary/ Reason:

  1. The euro was at $1.02785 on Thursday, slipped 0.20% after jumping 0.84% the day before, its biggest daily percentage gain since mid-June.

  2. Dollar regains slight momentum as T-note pulled back. The yields initially fell sharply on the CPI report but then moved higher later in the day as two Fed officials downplayed the CPI report and indicated that the Fed will continue to raise interest rates.

  3. Europe’s energy crisis, regional economic weakness, and the ECB’s reluctance to hike rates aggressively meanwhile have created headwinds for the common currency, limiting its upside performance against the greenback.

  4. The EUR/USD pair found solid resistance around the 1.0392 level, which pushed the price to rebound bearishly, hinting the attempt to resume the trading inside the mentioned channel, faces solid support at 1.0186 now, getting positive support by the EMA50.

  5. Contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that the continuation of the negative pressure and breaking 1. 0186 support will push the price to continue the decline and achieve negative at 1. 01227, while breaching 1. 0392 resistance represents the key to rally towards 1. 0456.




Important Levels to Watch for:

-        Resistance line of 0.95475 and 0.96053.

-        Support line of 0.93605 and 0.93027.

Commentary/ Reason:

  1. The dollar remains depressed around 0.94327 franc on a Thursday sluggish session, weighed around the 3-month low touched overnight, following a three consecutive day decline.

  2. Dollar struggles to regain inflation-induced losses, after the U.S. inflation data coming in less hot than feared and sending the dollar tumbling.

  3. Investors expect the U.S. Federal Reserve will not have to maintain its eye-wateringly steep pace of interest rate hikes, which had been supporting the dollar.

  4. Traders now await Swiss Unemployment Rate data for July later in the week. The USD/CHF seems to portray a cautious mood ahead of the Swiss Unemployment Rate for July.

  5. The USDCHF pair traded with strong negativity to achieve the waited target at 0.9360, though the price now rebounds bullishly, to potentially test 0.9547, making the bullish bias suggested for today, noting that the expected rise is temporarily, waiting to resume the main bearish wave.

  6. Breaking 0.9360 will stop the suggested bullish bias and press on the price to achieve additional decline that its next target reaches 0.9302.




Important Levels to Watch for Today:

-        Resistance line of 135.420 and 136.671.

-        Support line of 131.372 and 130.121.

Commentary/ Reason:                                        

  1. The yen was at 132.964 per dollar, flat on Thursday after the greenback had slid more than 1.5% overnight on the Japanese currency, which is particularly sensitive to moves in U.S. yields.

  2. The Japanese yen were sitting comfortably on Thursday after U.S. inflation data overnight came in less hot than feared, suggesting that the Federal Reserve might pivot, towards a dovish stance, spurring a risk-on impulse, and sent the dollar tumbling.

  3. A resurgence in FOMC rate expectations can help the USD recover, especially against the JPY, which is sensitive to changes in U.S. Treasuries.

  4. Though, a big divergence in the monetary policy stance adopted by the Bank of Japan and the Federal Reserve helps limit deeper losses for the USD/JPY pair.

  5. The USD/JPY pair hint heading to achieve additional bearish correction in the upcoming sessions, targeting visiting 131.372 as a next negative station. More expected decline on the intraday basis unless the price rallied to breach 135.420 and hold above it again.




Important Levels to Watch for:

-        Resistance line of 1.23167 and 1.23977.

-        Support line of 1.20547 and 1.19737.

Commentary/ Reason:

  1. Sterling held at $1.22131 on Thursday, was largely unchanged just below the 1-week high recorded overnight.

  2. The pound remains supported against the U.S. dollar, buoyed by rising buying interest despite falling crude oil prices.

  3. The rebound also be backed by the inversion of the interest rate gap between BoE and the U.S. Federal Reserve, substantial downward pressure on geopolitical conflicts, and improving confidence.

  4. BoE’s forecast of a recession underpins the vulnerability of the pound going forward.

  5. The GBP/USD pair rallied upwards strongly yesterday but it faces negative pressure now, affected by stochastic negativity, and it might test the bullish channel’s support line that appears on the chart before turning back to rise again.

  6. The EMA50 continues to support the price from below, to continue suggesting the main bullish trend unless breaking 1.2054 and holding below it, with the next resistance target reaches 1.2316.