INTRADAY TECHNICAL ANALYSIS 27 APRIL (observation as of 05:50 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21210 and 1.21432.

-        Support line of 1.20493 and 1.20272.

Commentary/ Reason:

  1. The euro slipped 0.1% to $1.20732, though remained close to the 1-month high of $1.21166 touched overnight.

  2. The euro fell back on weaker-than-expected German business confidence along with dovish ECB comments. ECB Executive Board member Panetta on Monday said, "faced with uncertainty about the true economic damage caused by the pandemic, we must preserve accommodative financing conditions well into the recovery."

  3. The dollar meanwhile garnered support from rising T-note yields.

  4. Investors now will weigh the outlook of the U.S. dollar ahead of the Fed's monetary policy decision today and tomorrow. While no major policy changes are expected, investors will pay close attention to comments from chairman Jerome Powell.

  5. The next few trading sessions will determine whether the current move is a pullback or reversal. Momentum indicators are bullish with RSI touching overbought conditions.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91741 and 0.91935.

-        Support line of 0.91110 and 0.90915.

Commentary/ Reason:

  1. The dollar added 0.24% against the Swiss franc. Now trading at 0.91549.

  2. The dollar rose against Swiss franc with investors consolidating positions ahead of the Federal Reserve's monetary policy meeting this week.

  3. Demand for the safe-haven greenback also is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.

  4. USD/CHF is now glued around the price line as buyers fail, once again, to generate a rally. Momentum indicators have flattened in bullish territory.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39371 and 1.39623.

-        Support line of 1.38555 and 1.38303.

Commentary/ Reason:

  1. The pound traded at $1.38874 against the dollar today as investors weighed the outlook of the dollar ahead of the U.S. Federal Reserve's monetary policy decision when it meets on Tuesday and Wednesday.

  2. Weakness in stocks on Tuesday increased the liquidity demand for the dollar.

GBPUSD