[EURUSD]

Important Levels to Watch for:

- Resistance line of 1.21150 and 1.21695.

- Support line of 1.19386 and 1.18841.

Commentary/ Reason:

- The euro soars on the day to 1.2079, fetching to a 2-1/2 year high earlier.

- Investors are heavily short on dollars as optimism about promising vaccine trials drives buying of riskier currencies and higher yielding assets outside the U.S.

- Hawkish comments from ECB Executive Board member Schnabel also gave EUR/USD a boost when he said the ECB should keep financial conditions at current levels through the rest of the pandemic crisis rather than announcing a grand stimulus package that beats market expectations.

- Strength in Eurozone economic data on Tuesday also supported gains in the euro.

- The moves, however, may be subdued as ECB could act against a rapid rise of the currency.

- On Tuesday, U.S. Treasury Secretary Mnuchin and House of Representatives Speaker Pelosi held stimulus talks for the first time since the election, while a bipartisan group of senators and House members proposed $908 billion worth of coronavirus relief measures.

- The Fed meets to set policy on Dec. 15-16.

[USDCHF]

Important Levels to Watch for:

- Resistance line of 0.90824 and 0.91200.

- Support line of 0.89605 and 0.89228.

Commentary/ Reason:

- The USDCHF pair has struggled to climb and latest trading once again saw a trade off in the U.S. dollar.

- The dollar touched a weekly low against the Swiss franc earlier on the day, last traded at 0.8989.

[GBPUSD]

Important Levels to Watch for:

- Resistance line of 1.34714 and 1.35203.

- Support line of 1.33132 and 1.32643.

Commentary/ Reason:

-  The pound was little changed on Wednesday at $1.3417.

- Sterling at more than a 3-month peak against the greenback as investors remain hopeful that a Brexit deal would be brokered before the year’s end.

- Though, a senior British minister said on Tuesday there was still a chance of a no-trade deal Brexit as talks with the European Union had snagged on fishing, governance rules and dispute resolution.

- Talks between EU chief negotiator Michel Barnier and British chief negotiator David Frost are ongoing, and the EU team are expected to stay in London for two or three more days.

- The three main sticking points in the Brexit talks remain fish stocks, economic fair play for companies including state aid, and ways to settle trade disputes.