[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.22147 and 1.22809.
- Support line of 1.20823 and 1.20161.
Commentary/ Reason:
The euro was little changed at $1.2177, taking a pause after a 0.8% gain last week.
The common currency is capped in part by signs of political instability in Italy and extended/ stricter lockdown regionally.
While in the U.S., the Democrats and Republicans are discussing a new $1.9 trillion in U.S. coronavirus relief, while the U.S. Federal Reserve is expected to maintain its strong commitment to accommodate monetary policy when it holds its first policy meeting later this week.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89013 and 0.89247.
- Support line of 0.88255 and 0.88021.
Commentary/ Reason:
The dollar unchanged against the Swiss franc, at 0.8850 on Monday.
The optimism that the new U.S. administration's massive stimulus package will bolster growth sapped demand for safe-haven currencies, while traders also are awaiting on the U.S. monetary policy holds later this week.
Switzerland's to hold referendum to decide on whether to impose lockdown or not to the country.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37993 and 1.38883.
- Support line of 1.36213 and 1.35323.
Commentary/ Reason:
The British pound held firm at $1.3714, added 0.31% on the day, not far off a 2-1/2-year high of $1.37452 touched on Thursday thanks in part to Britain’s lead in COVID-19 vaccinations.
However, the British Prime Minister Boris Johnson on Friday said there was evidence a new variant of COVID-19 discovered late last year could be associated with higher mortality, while problems in some vaccine rollouts also weighed on sentiment.
The U.S. Federal Reserve is expected to maintain its strong commitment to accommodative monetary policy when it holds its first policy meeting on Wednesday.
