INTRADAY TECHNICAL ANALYSIS 2 APRIL (observation as of 04:40 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18012 and 1.18286.
- Support line of 1.17126 and 1.16852.
Commentary/ Reason:
Against the dollar, the euro was quoted at $1.17774, near a 5-month high, to extend its gains for the third consecutive days.
Traders for now are looking past worsening virus trends, such as lockdowns in France, though remain focused on inflation risk as central banks reassert their commitment to low interest rates.
The dollar, meanwhile, was undercut by lower T-note yields, strength in stocks, weaker labor market, and upward momentum in new U.S. COVID-19 infections.
The 10-year T-note yield falling back from Tuesday’s 14-month high of 1.774%, while weekly initial unemployment claims rose by 61,000.
The markets are looking ahead to Friday’s March unemployment report, which will be released when the markets are closed for the holiday.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.94759 and 0.95033.
- Support line of 0.93875 and 0.93601.
Commentary/ Reason:
The greenback steadied at 0.94170 Swiss franc.
Demand for the safe-haven greenback also is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38628 and 1.38987.
- Support line of 1.37466 and 1.37107.
Commentary/ Reason:
The sterling rose 0.11% against the U.S. dollar to $1.38448 at the mid-morning Friday’s trade, amid the ease of the safe-haven greenback and U.S. bond yields, as well as recent increase in the U.S. pandemic infection rates.
The pound, meanwhile, rebounded on Britain’s better-than-expected economy that grew more than expected.
Investors are now looking at some details of Friday’s March unemployment report, which will be released later today. The common currency, however, are not expected to move much on Friday with financial markets closed in Britain, and the United States.
