INTRADAY TECHNICAL ANALYSIS 6 APRIL (observation as of 05:30 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18422 and 1.18741.
- Support line of 1.17390 and 1.17071.
Commentary/ Reason:
The U.S. dollar held at $1.1810 per euro after posting its steepest drop in several weeks overnight.
EUR/USD was pushed up to a new 1-week high earlier today on dollar weakness.
The worsening pandemic, however, is leading to slower growth in Europe that is bearish for EUR/USD.
France on Monday cut its 2021 GDP forecast to 5% from 6% because of the new 4-week nationwide pandemic lockdown.
Spanish Economy Minister Calvino on Monday said that Spain might revise its economic outlook downward for 2021 because of the worsening pandemic.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.94384 and 0.94728.
- Support line of 0.93271 and 0.92928.
Commentary/ Reason:
The dollar edged higher to 0.93719 Swiss franc, rose 0.10% on the mid-day Tuesday. But not before fluctuating to touch a weekly low of 0.93532 earlier today.
The outlook for the dollar remains solid as the underlying economic pulse pointed to a strengthening recovery.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39446 and 1.39847.
- Support line of 1.38148 and 1.37747.
Commentary/ Reason:
The British pound held steady at $1.39109, rose 0.12% on the day.
The pound was higher against the U.S. dollar at the opening today, lifted by buying support for the local currency.
The positive sentiment was strengthened as England is set to ease coronavirus pandemic restrictions on April 12, with the opening of businesses including all shops, gyms, hair salons and outdoor hospitality areas.
The greenback however, was weakening, undercut by lower T-note yields, strength in stocks, and upward momentum in new U.S. COVID-19 infections following the recent holiday.
