INTRADAY TECHNICAL ANALYSIS 29 JUNE (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19513 and 1.19683.
- Support line of 1.18963 and 1.18793.
Commentary/ Reason:
The euro eased to $1.19141, edging back toward the 2-1/2-month low of $1.8474 touched on June 18.
The euro confidence of late was undermined as economic reopening optimism faltered after the Delta variant of COVID-19 started to spread through Europe in the summer months.
Meanwhile the dollar, as a safe-haven is expected to benefit from some demand driven by concerns over the spread of the Delta virus strain.
Signs of a tight labour market however kept many investors fretting over wage-driven price pressures. Friday's payroll data is a key focus - with economists expecting an increase of 675,000 jobs. Some reckoning on the dollar falling back into a downtrend if the jobs data passes without surprise.
The EUR/USD has flattened mid-range between the 1.189 and 1.195 price levels, representing indecision with neither buyers nor sellers are dominating price action. The pair may now consolidate within the current trading range.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92239 and 0.92447.
- Support line of 0.91564 and 0.91355.
Commentary/ Reason:
The dollar advanced against the Swiss franc, added 0.11% on top of 0.30% yesterday to trade at 0.92013 on Tuesday.
The dollar as safe-haven currency benefited from demand driven by concerns over the spread of the Delta virus strain.
The dollar is trading rangebound in the several recent sessions as investors stayed on the sidelines ahead of Friday's jobs report.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39392 and 1.39663.
- Support line of 1.38515 and 1.38243.
Commentary/ Reason:
Sterling traded at $1.38663 on Tuesday, edging lower toward a 2-month low recorded on June 21st.
The dollar holding up, supported by the strength in T-note yields today.
The pound meanwhile was weighted as oil prices declined amid concerns that the spread of the COVID-19 Delta variant would ease demand for fuel.
The GBP/USD sellers are beginning to dominate price action and as such, the pair is now headed back towards the 2-month low. On a previous occasion, buyers have returned at this price level.
The optimism that the UK remains on track to end COVID-19 measures in July give some breathing room to the sterling. The UK Prime Minister Boris Johnson has said the remaining restrictions will be lifted on 19 July but has also promised a data review to see if this can happen two weeks earlier on 5 July.
