Intraday Forex Friday, August 13 (EURUSD, USDJPY, etc.) The dollar held firm as traders looked for more hints from the Fed on its rates tapering.

This observation is made around 05:15 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian equity markets continued to trade cautiously on Friday as traders pointing to continued worries about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the coronavirus in the region.
European shares poised for strong start Friday as investors took comfort from strong earnings reports and Europe’s high vaccination rates.

The dollar held firm and heads to retain a weekly gain against major currencies as investors looked for more hints from the Fed on its plans to reduce monetary stimulus.
The dollar also strengthened against commodity-linked currencies, underpinned by recovery optimism & easing of oil prices.
COVID-19 worries continue to cap gains for the risk-sensitive markets.

I also does analysis for some other currencies. Read more on the website on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

[EURUSD]

  • The euro eased slightly to $1.17379 on Friday, and on course for a second straight week of losses and staying not far from the four-month low of $1.1706 hit on Wednesday.
  • The dollar was on modest gains due to strength in U.S. economic data on weekly jobless claims and hawkish July PPI report. Higher T-note yields on Thursday also supported gains in the dollar. Several Fed officials this week meanwhile came out in support of tapering bond buying in coming months, setting themselves apart from the more dovish major central banks such as the European Central Bank.
  • However, weighing in the dollar was the rally in the S&P 500 and the Dow that rose to a new record high, which means reduced the liquidity demand for the dollar.
  • The euro meanwhile was under pressure on weaker-than-expected Eurozone economic data after Eurozone Jun industrial production fell -0.3% m/m, slightly weaker than expectations of -0.2% m/m.
  • The EUR/USD is trying to break away and making moves away from the recent price low at the 1.170 support level. The next test therefore will be the 1.175 resistance level, which represents the lower bound of a previous trading range.

Important Levels to Watch for:​

  • Resistance line of 1.17515 and 1.17878.
  • Support line of 1.17089 and 1.16826.

[USDJPY]

  • The dollar changed hands at 110.413 yen, eased below a 1-month high of 110.798 set on Wednesday, and heads for 0.2% gains for the week.
  • The pair hold on to gains on Friday as stronger T-note yields undercut the yen. — The U.S. PPI report meanwhile was stronger-than- expected and was hawkish for Fed policy and supportive of the dollar. Several Fed officials this week also had came out in support of tapering bond buying in coming months, setting themselves apart from the more dovish Bank of Japan.
  • The USD/JPY pair extended its sideways consolidative price action heading into the North American session and remained confined in a narrow trading band.
  • The USD/JPY pair is testing both the 110.67 price level as well as the descending trendline. Selling pressure has begun to rise as price action once again has retraced from this resistance area.

Important Levels to Watch for Today:​

  • Resistance line of 110.674 and 110.940.
  • Support line of 110.142 and 109.876.

[USDCHF]

  • The dollar against the Swiss franc was little changed for the day, stood at 0.92322, and heading for second weekly gain.
  • The currency pair keeps developing a correction to 0.9203. The USDCHF pair however shows positive trades that gradually approach on our first waited target at 0.924, getting positive support of breaching and head towards 0.926 as a next positive target. Therefore, we will continue to suggest the bullish trend unless breaking 0.919 and holding below it.

Important Levels to Watch for Today:​

  • Resistance line of 0.92470 and 0.92603.
  • Support line of 0.92037 and 0.91903.

[GBPUSD]​

  • Sterling was on the defensive at $1.38105 after hitting a 2-week low of $1.3794 in the previous session, drawing little help from slightly stronger-than-expected GDP estimate for June.
  • Britain’s economy grew by a faster-than-expected 1% in June and by 4.8% year-on-year in Q2. The food and beverage services sector meanwhile surged more than 10% as the economy continued to reopen. These figures slightly knock fears over the impact of the Delta variant.
  • The greenback also gained momentum after the release of U.S. economic data. Inflation data came in above expectations, with the IPP reading for July and jobless claims dropped in line with expectations.
  • From a technical perspective, the outlook for GBP/USD favours the downside for the moment. The pair is testing the 20-day moving average. A daily close under 1.374 would favour an extension of current down move. Although the pair will begin to make another attempt at the 1.391 resistance level as buyers have returned mid-range. The change in sentiment marks the start of another rally attempt.

Important Levels to Watch for Today:​

  • Resistance line of 1.39123 and 1.39973.
  • Support line of 1.37423 and 1.36573.

For more currencies analysis and other insight into the market, read more on the WEBSITE or click on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

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Chief Analyst at Golden Brokers. https://goldenbrokers.my/en/blog

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Zulbahri Muhammad

Zulbahri Muhammad

Chief Analyst at Golden Brokers. https://goldenbrokers.my/en/blog

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