INTRADAY TECHNICAL ANALYSIS 14 APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19779 and 1.20084.
- Support line of 1.18794 and 1.18488.
Commentary/ Reason:
The euro rose 0.11% to $1.19610, hitting its highest level since mid-March, as it extended a rally from a 5-month low of $1.1704 set on March 31.
The greenback’s fall came as U.S. bond yields dipped, thus reducing the currency’s yield attraction, as solid demand for a 30-year bond auction trumped rises in consumer inflation.
An uptick in a U.S. consumer price gauge also did not spark wider fears about accelerating inflation and the Federal Reserve’s tapering, pushing down U.S. bond yields.
A higher German bund yields meanwhile helped the euro. The 10-year German bund yield on rose to a 1-1/2-week high today inflation concerns after the German Mar wholesale price index rose in its fastest pace of increase in nearly four years.
Gains in EUR/USD were limited after the German Apr ZEW survey expectations of economic growth unexpectedly fell weaker than expectations.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92593 and 0.92842.
- Support line of 0.91790 and 0.91542.
Commentary/ Reason:
Against the Swiss franc, the dollar slipped to 0.91969 franc, near its lowest levels in 6-weeks.
The U.S. bond yields slipped lower, thus consequently dragged the dollar down.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37870 and 1.38160.
- Support line of 1.36930 and 1.36640.
Commentary/ Reason:
The pound was higher against the U.S. dollar on Wednesday, lifted by buying support for the local currency.
The British pound held steady at $1.37728, rose 0.17%.
The ease of the safe-haven greenback and U.S. bond yields, as well as recent increase in the U.S. pandemic infection rates gave support to the pound.
The pound also strengthened as England eased coronavirus pandemic restrictions by reopening of businesses including all shops, gyms, hair salons and outdoor hospitality areas started on April 12.
