INTRADAY TECHNICAL ANALYSIS 4 MAY (observation as of 04:45 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.20887 and 1.21136.

-        Support line of 1.20081 and 1.19832.

Commentary/ Reason:

  1. The euro slipped on Tuesday against dollar. Down 0.20% to $1.20400.

  2. A higher T-note yields strengthened the dollar's interest rate differentials as the 10-year T-note yield bounced on Tuesday.

  3. The common currency rose 0.36% overnight and found additional support from a surge in German retail sales and record-high euro zone factory activity, compared to the slowdown in U.S. manufacturing growth.

  4. The dollar maintained moderate trading on dovish Fed comments that suggest the Fed will maintain stimulus measures. Fed Chair Powell on Monday said, "the economic outlook in the U.S has clearly brightened," though has been slower for those in lower-paid jobs.

  5. 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 1.1983 price level remains a key support area.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91545 and 0.91777.

-        Support line of 0.90792 and 0.90559.

Commentary/ Reason:

  1. The dollar jumped 0.42% against the Swiss franc on Tuesday, to trade at 0.91422.

  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 1.39596 and 1.40100.

-        Support line of 1.37964 and 1.37460.

Commentary/ Reason:

  1. The pound edged lower at $1.38746, slipped 0.25% against the dollar on Tuesday.

  2. The dollar boosted on steadying Treasury yields.

  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. Investors made a cautious trade 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. Traders also awaited on the BoE meeting Thursday, where the Bank of England may announce a slowdown of its bond purchases.

GBPUSD