[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21902 and 1.22209.

-        Support line of 1.20907 and 1.20599.

Commentary/ Reason:

  1. The euro rose 0.13% to $1.2170, not far from its 1-month high recorded on Jan 25, at $1.2182.

  2. EUR/USD gains on improved economic optimism in the Eurozone, while the greenback retreated on the back of improved riskier asset demand and a retreat in U.S. Treasury yields.

  3. Eurozone yields fell sharply after the ECB President Christine Lagarde said on Monday, that the ECB is "closely monitoring" the recent rise in government bond yields, a sign that policymakers are becoming uncomfortable with the recent surge in borrowing costs.

  4. Federal Reserve Chair Jerome Powell is scheduled to give testimony to Congress later in the day, and investors are expected to look for any potential changes to the central bank's dovish outlook.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.90103 and 0.90376.

-        Support line of 0.89221 and 0.88948.

Commentary/ Reason:

  1. The dollar was flat against the Swiss franc on Tuesday, to trade at 0.8958, retreated 0.7% from its 1-week high of 0.9023 recorded overnight.

  2. Markets will turn their focus to Federal Reserve Chair Jerome Powell who is delivering his semi-annual testimony later today. Powell is likely to reiterate a commitment to keeping policy super easy for as long as needed to drive inflation higher.              

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.41111 and 1.41523.

-        Support line of 1.39776 and 1.39363.

Commentary/ Reason:

  1. Sterling rallied for the fourth day to hold above $1.40 at $1.4082 on Tuesday.

  2. GBP/USD posted a new 2-3/4 year high overnight on hopes that rising vaccination rates will allow the UK to ease COVID-19 restrictions and open the economy. With 30% of the adult UK population receiving at least one vaccination shot, the UK government will soon announce a timeline for opening the economy and easing lockdowns.

  3. GBP/USD also garnered support from higher gilt yields as the 10-year gilt yield on Monday rose to an 11-month high of 0.739%.

  4. Diminished Brexit uncertainty also lifted the pound.

  5. U.S. Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day is awaited. Traders expect Powell, who testifies before Congress at 1500 GMT, to provide some reassurance that the Fed will tolerate higher inflation without rushing to raise rates.

GBPUSD