[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.20927 and 1.21224.

-        Support line of 1.19965 and 1.19668.

Commentary/ Reason:

  1. The dollar was little changed at $1.20434 per euro in Wednesday session, after strengthening to $1.20116 overnight for the first time since Dec. 1.

  2. The positive sentiment for the dollar came on perceived widening disparity between the strength of U.S. and European economic recoveries from the coronavirus pandemic. Concern that the slow pace of vaccinations throughout the EU may slow the pace of economic recovery in the Eurozone is weighing on EUR/USD.

  3. A sell-off in the euro also came after coronavirus lockdowns choked consumer spending in Germany and short-covering in over-crowded dollar-selling positions. Meanwhile Eurozone Q4 GDP fell -0.7%.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.90053 and 0.90260.

-        Support line of 0.89382 and 0.89174.

Commentary/ Reason:

  1. The dollar extends its daily climb against the Swiss franc on Wednesday, to 0.89777, not far from yesterday’s 4-week high.

  2. The U.S. dollar advanced on weakness in the Swiss franc on the view that the U.S has an advantage in growing its economy and vaccinating its population against COVID-19.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.37603 and 1.38000.

-        Support line of 1.36317 and 1.35920.

Commentary/ Reason:

  1. Sterling little changed on Wednesday, to stay at $1.36669.

  2. Traders are cautious awaiting the announcement from the Bank of England regarding its monetary policy on Thursday.

GBPUSD