INTRADAY TECHNICAL ANALYSIS 22 APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20548 and 1.20726.
- Support line of 1.19971 and 1.19792.
Commentary/ Reason:
The euro was quoted at $1.20331, little changed from the opening.
EUR/USD was under pressure Thursday on long liquidation and position squaring ahead of Thursday’s ECB meeting.
Market participants now wait for the next course of action ahead of an ECB meeting later today, where any positive comments about the economic outlook or hints of tapering bond purchases are expected to send the common currency racing higher.
Though the ECB is not expected to change policy, but analysts say this meeting will set the stage for June, when policymakers must decide whether to slow bond buying.
The U.S. Federal Reserve policy meeting is due next week.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91999 and 0.92182.
- Support line of 0.91407 and 0.91224.
Commentary/ Reason:
The dollar was unchanged against the Swiss franc on Thursday to trade at 0.91642 Swiss franc.
The positive outlook for the dollar wobbled as Treasury yields slipped.
Investors will now look to the U.S. Federal Reserve's meeting next week for new trading cues.
Demand for the safe-haven greenback however is still 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 1.39621 and 1.39873.
- Support line of 1.38805 and 1.38553.
Commentary/ Reason:
The British pound bought $1.39277, rose 0.02% on the day.
The sterling was strengthened as the U.S. Treasury yields continue to retreat.
The dollar however 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.
Next price action will be after the ECB meeting later today and on the UK retail sales tomorrow.
