[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.19034 and 1.19187.
- Support line of 1.18340 and 1.18139.
Commentary/ Reason:
- The euro moved little at $1.1872 on Wednesday, after topping a 1-week high yesterday on dollar weakness.
- EUR/USD also garnered some support on Brexit optimism on reports that the U.K. and the European Union could strike a deal as soon as next week. Talks resumed on Monday between U.K. and EU negotiators and Irish Prime Minister Martin said that both sides can now see "the landing zones" around an accord.
- The pair however is still under pressure after a spike in COVID-19 infections forced the government to impose new lockdowns in several countries and states.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91590 and 0.91818.
- Support line of 0.91230 and 0.90628.
Commentary/ Reason:
- The dollar little changed against the Swiss franc on Wednesday, traded last at 0.9106.
- Contrary to last week, whereby encouraging progress in coronavirus vaccine testing helped the dollar rise against the Swiss franc, this time, the advancement subdued as the U.S. struggles to contain a second wave of infections, and with vaccine distribution not expected any time soon.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.32375 and 1.32573.
- Support line of 1.31732 and 1.31533.
Commentary/ Reason:
- Sterling edged up 0.15% to $1.3262 against dollar on Wednesday trade.
- Sterling edged higher as traders hoped for a Brexit trade deal breakthrough. The pair touched a 1-week high overnight.
- Britain’s chief negotiator David Frost has told Prime Minister Boris Johnson to expect a Brussels trade deal “early next week”, The Sun newspaper reported, with “a possible landing zone” as soon as next Tuesday.
- Sterling held firm after UK tabloid the Sun reported that Britain could reach a post-Brexit trade agreement with the European Union by early next week.
- Later today, British inflation figures are due, and several U.S. Fed members make speeches.
