[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21409 and 1.21692.
- Support line of 1.20495 and 1.20212.
Commentary/ Reason:
The euro changed hands at $1.2125, extending its fourth day rebound from a 2-month low of $1.19524 touched on Friday, consequently posted a 1-week high earlier today.
The euro got a boost on the strength in Eurozone economic data along with an easing of political instability in Italy.
While the optimism over monetary and fiscal support from the U.S. policymakers, robust corporate earnings, and the prospect that coronavirus vaccines have bolstered risk sentiment and curbed demand for dollar.
The rally in the stocks also made the dollar to be less favourable.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.89881 and 0.90161.
- Support line of 0.88977 and 0.88697.
Commentary/ Reason:
The dollar retreated 0.07% against the Swiss franc on Wednesday, to settle at 0.89158, to renew another weekly low since last Tuesday.
The dollar faltered as traders looking ahead to an expected recovery from the COVID-19 pandemic this year, driven by massive fiscal and monetary stimulus, making riskier currencies to be more favourable.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.38408 and 1.38713.
- Support line of 1.37419 and 1.37113.
Commentary/ Reason:
The British pound held firm at $1.38224, 0.05% lower of 0.38266, its highest level since April 2018 touched earlier today.
GBP/USD soared on underlying support from last Thursday's BOE policy meeting, where BOE policymakers pushed back against the idea of using negative interest rates.
The jump in the pound also associated on recent rally in global stocks, that reduced demand for the dollar, which usually considered as a safe haven currency.
Comments on Monday from Cleveland Fed President Mester also weighed on the dollar when she said that the economic recovery from the pandemic will be slow and that Fed policy is going to be accommodative for a very long time.
