[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.23200 and 1.23428.
- Support line of 1.22462 and 1.22234.
Commentary/ Reason:
- The euro rose to as high as $1.2325 early in the day, a high last seen in April 2018.
- The pair then slipping back to $1.2297, steadying as traders watched close over the results from Georgia flow in.
- If the Democrats do manage to take both seats the assumption will be that President-elect Biden will have more freedom to set policy and that likely means more fiscal easing, which would lift risk sentiment and weigh on the dollar.
- Better-than-expected Eurozone economic data on Tuesday also supported gains in the euro.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.88182 and 0.88358.
- Support line of 0.87614 and 0.87438.
Commentary/ Reason:
- Against the Swiss franc, the dollar took a breather to trade at 0.8804 on Wednesday. Earlier on the day, the USD/CHF slipped to a new 5-year low to 0.8770.
- Traders watched close as the Georgia run-off election results are due on Wednesday morning.
- Bets against the dollar have become crowded as investors wager that low U.S. interest rates and a big trade deficit can keep it heading lower for some time yet.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.36623 and 1.36967.
- Support line of 1.35510 and 1.35167.
Commentary/ Reason:
- Sterling was slightly softer at $1.3618, down 0.06% from opening trade.
- The British pound recovered from a tumble on Monday, when a surge in COVID-19 cases in the UK forced the PM to announce the new nationwide lockdown, until mid-February.