[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.18860 and 1.19065.
- Support line of 1.18196 and 1.17991.
Commentary/ Reason:
- The euro edged 0.10% lower against the dollar to $1.1843 on Thursday, below a 1-month high of $1.8803 hit on Wednesday.
- EUR/USD on Wednesday rose for the third day and posted a new 1-month high.
- Weakness in dollar is the main bullish factor for the euro on Wednesday.
- EUR/USD then fell back from its best levels on dovish ECB comments, as ECB President Lagarde said the unexpected second wave of COVID-19 infections is a "clear risk" to the economic outlook.
- Germany on Wednesday reported a record 8,523 new infections, Poland reported a record 10,040 new infections, and Italy also recorded a day record of 15,199 cases.
- Dollar expected to edged lower and weighted on the advancement of the pair movement as investors regain hope about the prospects for a pre-election U.S. stimulus package and as coronavirus cases continue to spike in Europe.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90778 and 0.90945.
- Support line of 0.90238 and 0.90071.
Commentary/ Reason:
- The dollar was last at 0.9065 against the Swiss franc, pulled back after an overnight 1-month low of 0.90304.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.32247 and 1.33107.
- Support line of 1.29466 and 1.28607.
Commentary/ Reason:
- Against the dollar, the pound steadied at $1.3135 in afternoon Asian trade.
- Sterling jumped to a 6-week high of $1.317658 overnight after Britain’s chief Brexit negotiator said talks with the European Union will resume on Thursday afternoon, apart from the greenback weakness.
- Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.
- EU and Britain struggled to make progress on a trade deal to avoid a fast-approaching disruptive finale to the five-year drama of Britain’s departure from the EU.
- New cases of COVID-19 infection remain a risk to Britain’s economic outlook. British government data published Wednesday showed that 26,688 more people tested positive for coronavirus, a 25% rise from Tuesday and its highest daily total recorded for the entire pandemic period.