Important Levels to Watch for:

-        Resistance line of 1.00462 and 1.00921.

-        Support line of 0.98975 and 0.98515.

Commentary/ Reason:

  1. The euro edged 0.14% higher to $1.0085 to broke above parity on Thursday, after sliding to a 20-year low of $0.99007 on Tuesday.

  2. The upside in the euro was limited by concern that the ongoing energy crisis in Europe will throw the Eurozone economy into recession.

  3. The single currency has been hurt by growth concerns as the region faces an energy crisis, with investors on edge before Russia halts gas supplies through the main Nord Stream 1 pipeline for three days from Wednesday for unscheduled maintenance. Soaring energy prices in Europe raised fears of more inflation in Germany and Britain.

  4. The U.S. dollar edged back as investors awaited a speech by Federal Reserve Chair Jerome Powell the following day for fresh clues on the path for monetary policy.

  5. The EUR/USD gained ground on the 20-day SMA, leading to the resistance of 1.0046, then 1.0921, provided the pair holds above 0.9897.

  6. Ahead of the highly-anticipated Jackson Hole Symposium, however, investors might refrain from taking large positions, causing the market action to remain choppy for the remainder of the day.




Important Levels to Watch for:

-        Resistance line of 0.96741 and 0.97064.

-        Support line of 0.95696 and 0.95372.

Commentary/ Reason:

  1. The dollar eased against the Swiss franc after a week of uptrend exhausted. The dollar was traded to 0.966252 franc, slipped 0.40% on Thursday.

  2. A risk on mode on the day weighed on the safe haven.

  3. Investors are cautious ahead of the awaited speech by Federal Reserve Chair Jerome Powell the on Friday for fresh clues on the path for monetary policy.




Important Levels to Watch for Today:

-        Resistance line of 137.918 and 138.643.

-        Support line of 135.572 and 134.847.

Commentary/ Reason:                                        

  1. The dollar retreated 0.40% to 136.552 yen but remained not too far from this week's one-month high of 137.705.

  2. The pair slipped as U.S. recession fears were fuelled by softer U.S. economic data. Traders took advantage of an overpriced U.S. dollar and sent the major down.

  3. BoJ policymaker on Thursday vows to keep ultra-low rates, warns of economic risks. The BoJ has refrained from joining a flurry of interest rate hikes by central banks battling record surges in prices, as it focuses on supporting Japan's delayed recovery from the pandemic's hit. The BoJ has deployed a massive amount of stimulus for nearly a decade to fire up inflation to its 2% target and continues to cap long-term interest rates around zero to support the economy.

  4. The outlook for Japan's economy was clouded by a renewed spike in pandemic cases, lingering supply constraints and persistent rises in global commodity prices.

  5. The USD/JPY fell after touching the 20-day SMA, representing a resistance that might push the pair lower to the support of 135.572, followed by 134.847, provided the pair holds below 137.918.