INTRADAY TECHNICAL ANALYSIS 21 JUNE (observation as of 06:35 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18865 and 1.19034.
- Support line of 1.18527 and 1.18358.
Commentary/ Reason:
The euro traded at $1.18719, having hit a 2-1/2-month low of $1.18474 on Friday.
The EUR/USD held its post-FOMC losses and witnessed some consolidation on Monday. The Fed last week surprised markets and brought forward its timetable for the first post-pandemic interest rate hikes.
The dollar meanwhile appears to be weighted, slanted by the weakness in T-note yields today that fell to its lowest since February.
A selloff in the global equity market is expected to benefit greenback's relative safe-haven status.
The EUR/USD has stalled at the 1.185 support level as the sell-off appears to have reversed. Given the sharp rise in bearish sentiment, a downward trend may be forming in the longer-term. The pair may now level off within the current range.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92384 and 0.92549.
- Support line of 0.92054 and 0.91889.
Commentary/ Reason:
The dollar turned lower against the Swiss franc on Monday. At the time of writing, the pair is trading at 0.92180, down 0.10% for the day.
The move lower by the dollar were weighted by the decline in the T-note yield today.
Market participants also reacted to the move of the Swiss National Bank (SNB), which kept its ultra-accommodative monetary policy unchanged.
The dynamics around the U.S. dollar expected to continue to influence the pair’s performance for the time being.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38390 and 1.38670.
- Support line of 1.37830 and 1.37550.
Commentary/ Reason:
The British pound fetched $1.38185, added 0.15%, though slipped below Friday's 2-month low of $1.3791 to touch a new low at $1.37858 earlier today.
The pound sterling was traded cautiously, as traders retain their stance awaited its latest policy decision on Thursday. Whereby the BoE may be forced to act next due to inflation data.
Britain’s top central bank officials look set to remain divided this week over whether to pull the plug on their 875 billion-pound ($1.2 trillion) government bond purchase programme, after inflation hit its highest in nearly two years.
The GBP/USD pair has pulled back to the 1.380 support level where buyers have returned in early trading. The current trading range represents a consolidation zone for the pair and the 1.380 support level has been an obstacle for sellers in the past.
