INTRADAY TECHNICAL ANALYSIS 16 APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.20115 and 1.20508.
- Support line of 1.19329 and 1.18936.
Commentary/ Reason:
The euro changed hands at $1.19568, moves a tad lower having hit a 6-week high of $1.1.19930 overnight, and set for a 0.5% weekly advance, adding to the previous period’s 1.8% surge.
Concern that a worsening pandemic in Germany, Europe’s largest economy, will lead to extended lockdowns that curb economic activity is weighting on the overall EUR/USD sentiment.
Germany reported 31,117 new COVID-19 Infections on Thursday, a 3-month high, and the occupancy rate in intensive-care units in German hospitals rose to 88% on Wednesday, the highest in more than a year.
A decline in T-note yields meanwhile weakens the dollar’s interest rate differentials and is negative for the dollar as the 10-year T-note yield fell to a 1-month low overnight at 1.527%.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.92495 and 0.92662.
- Support line of 0.91954 and 0.91786.
Commentary/ Reason:
The dollar edged higher to 0.92353 Swiss franc, rose 0.03% on the mid-day Friday.
The outlook for the dollar remains solid as the underlying economic pulse pointed to a strengthening recovery.
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 1.38157 and 1.38390.
- Support line of 1.37403 and 1.37170.
Commentary/ Reason:
Sterling bought at $1.37596, in its first day of the week to trade lower.
The move came as instability arises in the region after the riots held in Northern Ireland while the optimism on the ease of COVID-19 restriction seems to be cooling off.
The sterling has entered a consolidation mood. The UK GDP outpaced expectations but the optimism did not last for long, as the concerns around the use of the J&J vaccine and the prolonged issues with the EU over Brexit still linger on the fate of the currency.
Economic data also weighed on the currency. London new-home sales fell to their lowest level in almost nine years in the first quarter, led by a lack of interest from landlords and a dearth of buyers for central properties.
The GBPUSD has failed to truly test the 1.380 resistance level as price action has fallen short. A lack of bullish momentum is seeing the pair fade lower. The current trading rage is likely to remain intact. Momentum indicators have flattened in neutral territory.
