INTRADAY TECHNICAL ANALYSIS 3 MAY (observation as of 06:00 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.20358 and 1.20457.

-        Support line of 1.20160 and 1.20061.

Commentary/ Reason:

  1. The euro was steady at $1.20205, having backtracked form a 9-week peak of $1.2149 on Friday.

  2. A lower T-note yields weakens the dollar's interest rate differentials as the 10-year T-note yield recently retreated on Monday.

  3. EUR/USD meanwhile, were pressed since last week as an increase in political risks in Germany weighed on the euro.  support for Chancellor Merkel’s Christian Democrat party fell -12 points to 24%, while the support for the opposition party grew.

  4. The EUR/USD has pulled back to the descending trendline in a strong bullish move to end the trading week, last week. If the pair breaks back below the trendline, bearish sentiment will likely continue. The 1.198 price level remains a key support area. Momentum indicators signal a reversal. 

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91391 and 0.91586.

-        Support line of 0.91198 and 0.91000.

Commentary/ Reason:

  1. The dollar added 0.08% against the Swiss franc on Monday, to trade at 0.91374.

  2. 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, that lent support to the U.S. dollar.

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 lower at $1.38089, slipped 0.05% against the dollar on Monday. Not far from its weekly low recorded last Friday.

  2. On the broader side, most currencies are expected to be subdued due to the UK bank holiday. Investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, looking for clues on the outlook for global inflation and for policymakers’ response.

  3. 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.

  4. The GBP/USD pair has broken the ascending trendline in the first sign of a switch to bearish bias. If the break can be sustained, there is further downside potential. Momentum indicators signal a trend change as trajectories have turned downward. 

GBPUSD