INTRADAY TECHNICAL ANALYSIS MAY 11th (observation as of  08:30 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.09423

-        Support line of 1. 09260

Commentary/ Reason:

1.      The price was on a downtrend in the parallel channel and recently experienced high volatile movement to the downside.

2.      The Euro is losing strength after US CPI data shows that the economy is stabilizing with inflation YoY is lower albeit MoM is still rising slightly.

3.      There is inflation reading coming in today (PPI) and Initial jobless claim from the US but nothing significant from eurozone.

4.      The price is expected to trade below but have some room to recover to either resistance level at 1.09423 or even higher to supply area at 1.09617 but it’s a seller market.

5.      If the price break below support at 1.09260 without rebounding the price is expected to fall lower to 1.09101 and 1.08968 before being oversold.

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.89545

-        Support line of 0.89126

Commentary/ Reason:

1.      The pair have been in volatile trading that has seen the price increased exponentially after price fall on CPI inflation data and recovered strongly.

2.      The price is now on strong upside movement after the greenback strengthened on lower YoY inflation data.

3.      The PPI and initial jobless data from the US are expected to be released today and the consensus is at 0.2%, higher than last month.

4.      The price is expected to move further upward but technical indicator shows that its on overbought spree, indicating that a retracement is imminent once buyers take profit.

5.      However, if the price keep pushing upward even after breaking above resistance level of 0.89545, its expected that the price will try to test resistance level at 0.89733.

[USDJPY]

Important Levels to Watch for:

-        Resistance line of 135.133

-        Support line of 134.652

Commentary/ Reason:

1.      The pair were previously on a steep downtrend but recovered some of its value and on a strong uptrend.

2.      The price was affected by CPI but eventually recovered on weaker Asian market.

3.      There is PPI and initial jobless claim coming from the US and M2 money stock from the japan.

4.      The price is expected to continue to break resistance although there is a possible retracement from having overbought and strong resistance at 135.133.

5.      The technical indicators are all saying buy with some more sensitive indicator are overbought indicating a selling or cautious trade.

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.26152

-        Support line of 1.25847

Commentary/ Reason:

1.      The pair have been on a strong downtrend but recently recovered some of its lost value.

2.      The price fell after USD strengthened although its weakened right after CPI report.

3.      There is PPI and Initial Jobless claim from the US and Interest rate decision from Bank of England that is expected to be a 25-basis point hike, causing high volatility.

4.      The price is expected to keep hiking higher to supply zone at 1.26152 but higher inflation in the region could pull the price lower.

5.      If the price is unable to close higher than current support line as technical indicator suggests, the price is expected to go much lower to 1.25496 as suggested by Fibonacci level.