INTRADAY TECHNICAL ANALYSIS 10 SEPTEMBER (observation as of 05:15 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18462 and 1.18609.
- Support line of 1.17977 and 1.17841.
Commentary/ Reason:
The euro was flat in early Friday at $1.18290, after the ECB announcement helped it stem a few days of losses, as it fell off its month high set at the end of last week.
The euro is on track for a 0.47% declines this week.
The single currency got some small measure of support overnight, after the ECB said it would trim emergency bond purchases over the coming quarter, as widely expected. EUR/USD also gained after the ECB raised its 2021 Eurozone GDP estimate to 5.0% from 4.6% and raised its 2021 Eurozone inflation forecast to 2.2% from 1.9%.
Eurozone bonds yields tumbled following the step. French 10-year yields turned negative. Germany's 10-year yield, the benchmark for the bloc also fell.
The EUR/USD pair hovers to form intraday resistance against the price, to support the chances of resuming the negative trades in the upcoming sessions, waiting to test 1.1798 mainly, with bearish trend for the upcoming period, which its targets extend to 1.1784 after breaking the previous level.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92455 and 0.92677.
- Support line of 0.91737 and 0.91517.
Commentary/ Reason:
A cautious mood saw the safe-haven Swiss franc gains slightly on the day, but still on track to 0.38% weekly losses. The franc was steady at 0.91672 per dollar.
The dollar pared gains from its 3-week high recorded on Wednesday following dovish remarks from a Federal Reserve official.
The USD/CHF pair broke the sideways range level strongly and settled below, which stops yesterday’s suggested positive scenario and push the price back to the sideways track again, to move between the mentioned resistance and 0.9136 support, and the price needs to breach one of these levels to detect its next destination clearly.
Continuing the decline and breaking the mentioned support will press on the price to reach 0.9109, while breaching the resistance will lead the price to visit 0.9250.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38865 and 1.39293.
- Support line of 1.37481 and 1.37053.
Commentary/ Reason:
Sterling rose 0.12% to $1.38517 on Friday but was little changed for the week.
The GBP/USD pair began to sell off at the beginning of the trading week. However, price action found support in the 1.374 level and started a surge as buying pressure rose sharply in yesterday’s trading. Horizontal trading will likely ensue in the absence of any significant change in fundamentals.
If the pair passes the resistance at the 1.3885 level, above the point, the rate could find the next resistance at 1.3929.
The pound was able to recover after UK policymakers testified before the House of Commons in the Monetary Policy Report Hearings, as they lifted speculation on soon to come tapering in the UK, stating that the minimum conditions for a rate rise have been met.
