INTRADAY TECHNICAL ANALYSIS 9 APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19427 and 1.19688.
- Support line of 1.18580 and 1.18318.
Commentary/ Reason:
The euro slipped -0.05% to $1.19063 against the dollar, though still up to rake its largest weekly percentage gains in five months.
EUR/USD overnight climbed to a fresh 2-week high on solid Eurozone economic data. German Feb factory orders and Markit construction PMI rose stronger than expectations. In addition to the Eurozone Feb PPI that rose in its fastest pace of increase in 1-3/4 years.
Meanwhile for the U.S., overnight figures showed U.S. unemployment claims unexpectedly rose - a bit of a dampener after a bumper payroll report last week.
A decline in T-note yields is negative for the dollar. The softer unemployment data and Powell's dovish comments helped yields on the benchmark 10-year U.S. Treasury note drop to its lowest level since March 26.
Traders for now are looking past worsening virus trends, such as lockdowns in France, though remain focused on inflation risk as central banks reassert their commitment to low interest rates.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93040 and 0.93332.
- Support line of 0.92096 and 0.91804.
Commentary/ Reason:
The dollar edged higher against the Swiss franc, breaking 4 consecutive days drop.
The greenback last bought at 0.92464 Swiss franc.
Demand for the safe-haven greenback is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.
Though a retreat in U.S. yields has limited the dollar gains.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37851 and 1.38103.
- Support line of 1.37035 and 1.36783.
Commentary/ Reason:
Sterling was an outlier against the dollar this week as it fell around 1.3% against the greenback for the week.
On Friday, the pound sit at $1.37332, little changed since opening.
The pound weighted amid growing concerns about Britain’s reliance on AstraZeneca’s vaccine. The vaccine of late has been plagued by safety concerns and supply problems.
Sterling retreat however limited on business optimism, as the PM announced that England would proceed to reopen the country from April 12.
The greenback, meanwhile, was undercut by a decline in T-note yields that is negative for the dollar following the latest Fed comments at FOMC meeting and the IMF event.
