INTRADAY TECHNICAL ANALYSIS 21 APRIL (observation as of 05:20 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20807 and 1.21032.
- Support line of 1.20081 and 1.19856.
Commentary/ Reason:
The single currency slipped to trade at $1.20274 on Wednesday, after touching a 7-week high of $1.20796 overnight.
Market participants now await the ECB meeting on Thursday for further clarity about stimulus plans for the bloc. The U.S. Federal Reserve policy meeting is due next week.
The EUR/USD has stalled once again at the descending trendline as selling pressure rose at this key resistance area. The next few trading sessions will determine buyers’ resolve. Momentum indicators are bullish with RSI flattening just below overbought conditions.
Some encouragement for the euro meanwhile came from the announcement that the EU has secured an additional 100 million doses of the COVID-19 vaccine produced by BioNTech and Pfizer.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91782 and 0.91937.
- Support line of 0.91278 and 0.91123.
Commentary/ Reason:
The dollar edged higher to 0.91658 Swiss franc, rose 0.12% on the mid-day Wednesday.
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, although the decline in the Treasury yield capped optimism.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.40092 and 1.40417.
- Support line of 1.39041 and 1.38717.
Commentary/ Reason:
The British pound edged lower to $1.39187, slipped from its 1-month high overnight.
The dollar did get some support as global shares pulled back from record highs as COVID-19 numbers continue to soar globally and put paid to expectations of a quick economic recovery.
The sterling optimism came as the U.S. Treasury yields retreated on the day.
