[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21914 and 1.22182.
- Support line of 1.21049 and 1.20782.
Commentary/ Reason:
The euro was mostly flat on Wednesday, at $1.21570 after rising 0.17% in the previous session.
The greenback held declines against riskier currencies, with pandemic recovery hopes getting a boost as the IMF upgraded its forecast for 2021 global growth.
The euro moves cautiously on signals that the EU economy may not rebound as strongly this year as predicted. Germany’s Ifo business climate indicator undershot expectations on Monday and an economic surprise index in Europe is near 6-week lows.
Meanwhile, political instability in Italy extended, as Prime Minister Conte handed in his resignation to the head of state, hoping he would be given an opportunity to put together a new coalition and rebuild his parliamentary majority.
German Chancellor Merkel said that Germany's management of the pandemic has "slipped out of control" and stricter curbs are needed to prevent a new wave of the disease.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.88973 and 0.89126.
- Support line of 0.88480 and 0.88328.
Commentary/ Reason:
The dollar moved marginally higher on Wednesday early trade to stay at 0.88681 against the Swiss franc, after overnight’s close of 0.17% lower.
Mounting coronavirus cases and caution ahead of the conclusion of the U.S. Federal Reserve’s policy meeting on Wednesday have put the currency in check.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37603 and 1.38383.
- Support line of 1.36043 and 1.35263.
Commentary/ Reason:
The British pound climbed as high as $1.3750 for the first time since May 2018 earlier today, before trading steadier against the dollar at $1.3734. The pair closed 0.42% higher overnight.
The British pound strengthened against the dollar as rekindled risk appetite in broader asset markets weakened the U.S. dollar.
