INTRADAY TECHNICAL ANALYSIS 12 APRIL (observation as of 05:50 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.19427 and 1.19688.

-        Support line of 1.18580 and 1.18318.

Commentary/ Reason:

  1. The euro slipped -0.10% to $1.18858 against the dollar, though still above its recent trough of $1.1702.

  2. The euro opened flat against the U.S. dollar today amid higher U.S. bond yields and finicky crude oil prices.

  3. Traders for now are looking past worsening virus trends, such as lockdowns in France and re-emergence in the U.S., though remain focused on inflation risk as central banks reassert their commitment to low interest rates.

  4. The pair has broken the 1.184 resistance line with a resulting slowdown in bullish momentum. Price action has been contained within this trading range on previous occasions. Overall, longer-term sentiment is bearish with price action being contained by the descending trendline. Momentum indicators have upward trajectories.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.92876 and 0.92843.

-        Support line of 0.92348 and 0.92183.

Commentary/ Reason:

  1. The dollar edged 0.22% higher against the Swiss franc, to trade at 0.92656.

  2. Demand for the safe-haven greenback is favoured due to persistent concerns over a resurgence of COVID-19 and global lockdowns.

  3. Though a retreat in U.S. yields has limited the dollar gains.

  4. Price action may now oscillate between the 0.922 and 0.930 price levels in the near-term. Momentum indicators have bearish trajectories.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37851 and 1.38103.

-        Support line of 1.37035 and 1.36783.

Commentary/ Reason:

  1. The pound sit at $1.36810, slipped 0.16% against the dollar on Monday.

  2. Concerns related to the AstraZeneca vaccine and Brexit are hitting the pound. The vaccine of late has been plagued by safety concerns and supply problems. AstraZeneca shot was considered successful until concerns related to blood clots arose, leading to a slowing pace of vaccination.

  3. Another factor weighing on sterling is the effects of Brexit in Northern Ireland. The protocol agreed after the UK’s departure from the Union has resulted in trade barriers between Britain and Northern Ireland. Unionist riots have been hitting the area since late March, escalating as time goes by.

  4. The UK macroeconomic calendar will remain light until next Tuesday.

  5. GBP/USD is poised to extend its decline towards the 1.3500 price zone.

GBPUSD