INTRADAY TECHNICAL ANALYSIS 15 APRIL (observation as of 05:20 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19968 and 1.20115.
- Support line of 1.19493 and 1.19347.
Commentary/ Reason:
The euro forego its 3-day rise to trade lower on Thursday. The euro traded at $1.19734, though still hovered near its highest level in a month and having gained more than 2.2% so far this month.
The COVID-19 infections rate in the European zone showing an upward trend, hence weighted on the overall market sentiment. Germany's 7-day COVID-19 infection rate of cases per 100,000 people rose to a 3-month high of 153.2 on Wednesday.
Comments from Fed Chair Powell on Wednesday weighed on the dollar when he said most Fed officials don’t see rate increases until 2024.The dollar recovered from its worst levels due to weakness in stocks along with higher T-note yields.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92469 and 0.92673.
- Support line of 0.91812 and 0.91609.
Commentary/ Reason:
The dollar edged higher to 0.92353 Swiss franc, rose 0.18% on the mid-day Thursday.
The outlook for the dollar remains solid as the underlying economic pulse pointed to a strengthening recovery.
Demand for the safe-haven greenback also is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38157 and 1.38390.
- Support line of 1.37403 and 1.37170.
Commentary/ Reason:
Sterling was a shade lower at $1.37670. After 3 days of winning shots, GBP/USD is missing the action in the Asian session.
The move came as instability arises in the region after the riots held in Northern Ireland while the optimism on the ease of COVID-19 restriction seems to be cooling off.
The sterling has entered into a consolidation mood. The UK GDP outpaced expectations but the optimism didn’t last for long, as the concerns around the use of the J&J vaccine and the prolonged issues with the EU over Brexit still linger on the fate of the currency.
