INTRADAY TECHNICAL ANALYSIS 8 APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19166 and 1.19379.
- Support line of 1.18476 and 1.18263.
Commentary/ Reason:
The euro was steady at $1.18702, after reaching as high as $1.19144 overnight following a surprisingly upbeat survey of EU business activity.
The dollar retreated following a lower T-note yields that weaken the dollar’s interest rate differential. The minutes of the Mar 16-17 FOMC meeting were negative for the dollar as they stated that policymakers agreed the economy was far from their long-term goals and that "the path ahead remained highly uncertain with considerable risks to the economic outlook" from the pandemic.
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.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93237 and 0.93439.
- Support line of 0.92582 and 0.92379.
Commentary/ Reason:
The dollar eased on Thursday, to trade lower for the fourth consecutive days.
The greenback last bought at 0.92939 Swiss franc.
Dollar continued its downwards trajectory after minutes of the Federal Reserve’s March policy meeting offered no new catalysts to dictate market direction.
The retreat in U.S. yields has removed a driver for dollar gains.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38406 and 1.38857.
- Support line of 1.36947 and 1.36497.
Commentary/ Reason:
Sterling was traded higher at $1.37581, rose 0.17% on Thursday, though slumped more than 1% for the last two days.
The pound garnered support as Prime Minister Boris Johnson said earlier this week that England would proceed with the next stage of his plan to allow businesses to reopen from April 12 thanks to progress with vaccinations for COVID-19.
The greenback, meanwhile, was weakening, undercut by lower T-note yields following the latest FOMC meeting yesterday.
