INTRADAY TECHNICAL ANALYSIS 28 APRIL (observation as of 05:05 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21025 and 1.21170.

-        Support line of 1.20555 and 1.20410.

Commentary/ Reason:

  1. The euro slipped 0.12% to $1.20753, off Monday’s 2-month high of $1.21166.

  2. Strength in T-note yields supported gains in the dollar along with short-covering ahead of the outcome of the 2-day FOMC meeting later today.

  3. The U.S. central bank is widely expected to maintain its policy settings and Fed Chairman Jerome Powell is seen as likely to repeat his dovish message, though some analysts say signs of rising inflation expectations could nudge the Fed to abandon its rhetoric that a policy tightening is still a long way off.

  4. Besides the Fed, investors are looking to President Biden’s first address to a joint session of Congress, also scheduled later today. Biden is expected to roll out a plan to raise taxes on the wealthiest Americans, including the largest-ever increase in levies on investment gains, to fund about $1 trillion in childcare.

  5. The dollar also garnered support as the pandemic situation improves in the U.S. after the pace of new COVID-19 infections in the U.S. fell to a 1-month low.

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 Swiss franc traded lower against the U.S. dollar on renewed demand for the greenback as steady U.S. Treasury yields and increased risk aversion following surging COVID-19 cases, lent support to the U.S. dollar.

  2. The dollar added 0.22% against the Swiss franc on Wednesday, to trade at 0.91539.

  3. The dollar also strengthened against Swiss franc with investors consolidating positions ahead of the Federal Reserve's monetary policy meeting outcome later today.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39361 and 1.39617.

-        Support line of 1.38533 and 1.38277.

Commentary/ Reason:

  1. The pound edged lower at $1.38762 against the dollar today, though trading is expected to be subdued as investors weighed the outlook of the dollar ahead of the U.S. Federal Reserve's monetary policy decision later today.

  2. Concerns relating to complications in AstraZeneca Plc’s shot also could throw a proverbial wrench in the works for the pound.

  3. Weakness in stocks also increased the liquidity demand for the dollar.

GBPUSD