INTRADAY TECHNICAL ANALYSIS 30 APRIL (observation as of 05:40 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21743 and 1.22243.

-        Support line of 1.20743 and 1.20243.

Commentary/ Reason:

  1. The positive risk mood saw the euro extending its bull run to a 2-month high of $1.21495 in the previous session and it last stood at $1.21185 on Friday. With 3.3% gains so far this month, it is on course for its biggest monthly rise in 9 months.

  2. The euro was supported on better-than-expected Eurozone economic data. Eurozone Apr economic confidence rose to a 2-1/2 year high, while the German Apr CPI (EU harmonized) also rose stronger than expectations and at the fastest pace of increase in 2 years.

  3. The strong data lifted the 10-year German bund yield to a 13-month high on Thursday of -0.178%, which is supportive for EUR/USD.

  4. Strength in T-note yields also was supportive of the dollar. The 10-year T-note yield on Thursday climbed to a 2-week high of 1.686%.

  5. At the conclusion of the US central bank's latest policy meeting, Fed Chair Jerome Powell acknowledged the economy's growth, but said there was not yet enough evidence of "substantial further progress" toward recovery to warrant a change in policy.

  6. The EUR/USD is moving closer to the 1.217 resistance are, though momentum appears to be slowing. Previous tests of this resistance area have been rejected and therefore significant conviction will be required to overcome this price line. Momentum indicators suggest that the pair is overbought, and a reversal may be beginning. 

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91220 and 0.91389.

-        Support line of 0.90671 and 0.90501.

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 0.06% against the Swiss franc on Friday, to trade at 0.90882.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.39810 and 1.39990.

-        Support line of 1.39230 and 1.39050.

Commentary/ Reason:

  1. The pound edged higher at $1.39493, rose 0.07% against the dollar on Friday.

  2. Concerns relating to complications in AstraZeneca Plc’s shot and a higher T-note yields could throw a proverbial wrench in the works for the pound.

  3. The GBP/USD pair is starting to build momentum towards the 1.40 price line, which was the obstacle leading to a pullback in the previous rally.

GBPUSD