Intraday Forex Wednesday, August 4 (EURUSD, USDJPY, etc.) Dollar pressured ahead of jobs data. Delta outbreaks fueled safe-haven currencies.

Asian shares advanced on Wednesday, led by strong U.S. corporate earnings and accelerating Chinese services activity growth, although the mood remained cautious as the rapidly spreading Delta variant of the coronavirus clouds the global economic outlook. A deepening regulatory scrutiny in China also sent jitters through the global technology sector.

The dollar was pinned against other currencies, as markets looked ahead to partial U.S. labour data due later today and non-farm payroll figures due on Friday.

[EURUSD]

  • The euro was a touch higher at $1.18727 per dollar on Wednesday, as traders awaited U.S. jobs data for a guide to the rates outlook.
  • The pair was broadly steady as markets looked ahead to partial U.S. labour data due later today and non-farm payroll figures due on Friday.
  • Clouding the outlook further is the spread of COVID-19 Delta variant. The 7-day average of daily coronavirus cases in the U.S. surpassed the peak seen last summer, a time before COVID-19 vaccine approved.
  • The EUR/USD continues to float along the 1.184 and 1.189 price levels, as neither buyers nor sellers appear to have the appetite to drive price action. The current range of price levels will likely float sideways and a change in price action will be facilitated by a change in fundamental factors.
  • Resistance line of 1.18972 and 1.19130.
  • Support line of 1.18460 and 1.18302.

[USDJPY]

  • The dollar traded 109.057 per yen on Wednesday, having weakened from the levels below 109.8 against the Japanese yen earlier this week, and after touching its lowest since late May overnight at 108.878.
  • The U.S. dollar eased against the Japanese yen as questions about disappointment in economic growth. Lower Treasury yields are also weighing on the greenback.
  • Mixed risk sentiment readings are driving investors into the safety of the Japanese yen. The yen has benefited from the dollar’s softness, particularly as nerves about the spread of the Delta coronavirus variant keep a degree of caution in currency markets.
  • The yen strength however was hampered after Japan’s services sector activity shrank at a faster pace in July to contract for the 18th consecutive month, dropped to 47.4 from the previous month’s 48.0 level.
  • Bearish sentiment is driving price action which looks set to continue to break out of the current range.
  • Resistance line of 109.360 and 109.548.
  • Support line of 108.749 and 108.560.

[USDCHF]

  • The safe-haven Swiss franc has been on the front foot against the U.S. dollar. It hit a 7-week high of 0.90223 per dollar overnight, and last traded at 0.90344 on Wednesday.
  • The Swiss franc benefited from the dollar’s softness, particularly as nerves about the spread of the Delta coronavirus variant keep a degree of caution in currency markets prompted traders to wind back bets on a strong economic recovery.
  • The greenback remained sideways as traders waited for more economic data releases this week, especially the labour data on Friday. The USD/CHF is accumulating on the downside, approached 0.9000 barrier support level target, and breaking the level represents the key to head towards 0.899 as a next negative station.
  • Resistance line of 0.90630 and 0.90787.
  • Support line of 0.90124 and 0.89967.

[GBPUSD]​

  • The British pound gains 0.10% on Wednesday to $1.39280.
  • Sterling has found momentum from an encouraging end to COVID-19 restrictions in the England, which has so far seemed not to cause a spike in virus deaths.
  • Attention there now turns to a Bank of England meeting on Thursday, with focus on policymakers economic projections and on what they say that means for rates. The BoE is expected to keep its benchmark interest rate and its bond-buying target unchanged.
  • The GBP/USD pair will make another attempt around the 1.394 price level after a recent pullback. The price level represents the upper bound of a recent trading range and a break would indicate significant bullish conviction.
  • Resistance line of 1.39482 and 1.39703.
  • Support line of 1.38765 and 1.38543.

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