[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.17771 and 1.17972.
- Support line of 1.17121 and 1.16920.
Commentary/ Reason:
- The euro held at $1.1750 against the dollar, after its biggest daily percentage drop since mid-August on Tuesday.
- EUR/USD moved higher following a Bloomberg report that said the UK is looking to continue efforts to reach a Brexit agreement, while the dollar extended its losses Wednesday on dovish Fed comments.
- Euro zone industrial production data showed the recovery slowed sharply in August, in line with expectations.
- European nations are extending restrictions well beyond social life to close schools, cancel surgeries and enlist legions of student medics as overwhelmed authorities face their nightmare scenario of a COVID-19 resurgence at the onset of winter. With new cases hitting about 100,000 daily, Europe has by a wide margin overtaken the United States, where more than 51,000 COVID-19 infections are reported on average every day.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91684 and 0.91890.
- Support line of 0.91020 and 0.90814.
Commentary/ Reason:
- The dollar was last treading water at 0.9131 against the Swiss franc.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.31038 and 1.31810.
- Support line of 1.28542 and 1.27770.
Commentary/ Reason:
- Sterling held above $1.30, helped by news of some progress in British-EU trade talks this week. GBP/USD on Wednesday rebounded from a 1-week low and rose 0.73% on positive Brexit news.
- Sterling last sat at $1.3016.
- The European Union and Britain were set to prolong Brexit talks past a mid-October deadline to try bridge stubborn gaps holding up a new trade agreement, according to sources and documents.
- EU leaders meeting on Thursday and Friday will tell their Brexit negotiator Michel Barnier to step up talks to get a deal by Jan. 1, 2021.
- Bloomberg reported on Wednesday that the U.K. is looking to continue efforts to reach a Brexit trade agreement with the EU even if no deal has been reached beyond Prime Minister Johnson's Oct 15 deadline.