INTRADAY TECHNICAL ANALYSIS 7 APRIL (observation as of 05:15 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19001 and 1.19320.
- Support line of 1.17967 and 1.17648.
Commentary/ Reason:
The euro down 0.03% to $1.18709, eased after rallied to a 2-week high of $1.18777 earlier today.
The dollar retreated since yesterday on lower T-note yields that weaken the dollar’s interest rate differential. Traders rolled back aggressive expectations that the Federal Reserve will tighten its policy earlier than pledged.
The euro, meanwhile, rallied following overnight economic data. investor optimism increased after Eurozone Apr Sentix investor confidence rose to a 2-1/2 year high of 13.1, stronger than expectations of 6.7.
The worsening pandemic, however, is leading to slower growth in Europe that is bearish for EUR/USD.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.93945 and 0.94316.
- Support line of 0.92745 and 0.92374.
Commentary/ Reason:
The dollar traded steady on Wednesday after slumped 0.56% and 0.66% for the last two days.
The greenback last bought at 0.93088 Swiss franc.
Lower T-note yields weaken the dollar’s interest rate differentials and are negative for the dollar. The 10-year T-note yield on Tuesday fell to a 1-week low of 1.651%, falling back further from last Tuesday’s 14-month high of 1.774%.
The dollar however saw some underlying support from better-than-expected U.S. economic data, along with the IMF’s hike in its global 2021 growth forecast.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.39232 and 1.39687.
- Support line of 1.37761 and 1.37307.
Commentary/ Reason:
Sterling was traded slightly higher at $1.38285.
The pound garnered support as Prime Minister Boris Johnson said on Sunday that England would proceed with the next stage of his plan to allow businesses including all shops, gyms, hair salons and outdoor hospitality venues to reopen from April 12 thanks to progress with vaccinations for COVID-19.
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, hat has slowed economic growth and is dovish for Fed policy.
