INTRADAY TECHNICAL ANALYSIS I APRIL (observation as of 05:00 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.17653 and 1.17873.
- Support line of 1.16938 and 1.16717.
Commentary/ Reason:
The euro changed hands at $1.17177 on Thursday, traded 0.10% lower, after moved slightly higher overnight, though not enough to offset this week’s earlier damages.
The euro has been punished on pandemic resurgence on the continent. France President Emmanuel Macron on Wednesday put his country into a third lockdown and said schools would close for three weeks to cope with a third wave of COVID-19 infections that threatens to overwhelm hospitals.
Dovish ECB comments on Wednesday also undercut German bund yields and EUR/USD. ECB President Lagarde said the market could test the ECB's resolve "as much as it wants," but policymakers won't shy away from using all of its tools should the market try to push bond yields higher.
Investors now awaited President Biden’s spending plan later today and Friday's U.S. labour market data to assess the growing gap in recoveries astride the Atlantic Ocean.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.94694 and 0.94929.
- Support line of 0.93933 and 0.93697.
Commentary/ Reason:
The Swiss franc extended its decline for third consecutive day, weighed down by a strengthening greenback and higher U.S. Treasury yields.
The greenback traded at 0.94580 Swiss franc, rose 0.25% on Thursday, on top of 0.18% and 0.33% for the last two days.
U.S. President Joe Biden is expected to put some detail in his infrastructure spending plans later today.
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 1.38303 and 1.38673.
- Support line of 1.37104 and 1.36733.
Commentary/ Reason:
Against the dollar, the British pound slipped 0.08% to trade at $1.37664.
The pound rebounded yesterday on Britain’s better-than-expected economy that grew more quickly than previously thought in the final three months of last year. Although fell back following a jump in T-note yields, along with strong U.S. economic data overnight.
The dollar held high against the sterling as investors bet fiscal stimulus and aggressive vaccinations will help the U.S. grow faster than other economies.
Next, investors are now looking at some details of U.S. President Joe Biden’s infrastructure spending plan, expected to be unveil later today.
