Important Levels to Watch for:

-        Resistance line of 1.16730 and 1.16953.

-        Support line of 1.16008 and 1.15785.

Commentary/ Reason:

  1. The euro was firm against the dollar at $1.16585.

  2. The euro steadied on Monday as traders weigh the effect of inflation on the relative pace of looming rate hikes - with a wary eye on U.S. growth data and a European Central Bank meeting later this week.

  3. Lower T-note yields on Monday also undercut the dollar along with strength in the euro. The euro bounces as markets expect a more aggressive stance from the ECB.

  4. The EUR/USD pair will make yet another attempt at the 1.167 resistance line and again candles suggest a lack of appetite from buyers not only to drive a break but also a rally. The pair will likely languish within the current range for the near-term.




Important Levels to Watch for:

-        Resistance line of 0.91788 and 0.91946.

-        Support line of 0.91472 and 0.91314.

Commentary/ Reason:

  1. The dollar moved lower against the Swiss franc on Monday, traded at 0.91540, and dragged to a more than one-month low.

  2. The dollar eased, following lower U.S. benchmark 10-year Treasury bond yields. The U.S. Fed Chairman Jerome Powell on Friday hinted that the central bank is prepared to begin tapering its monthly bond purchases but warned that inflation is likely to remain elevated into 2022.

  3. On the other hand, the Swiss franc gains momentum on its safe-haven appeal. The risk-off impulse in the markets benefited the safe-haven Swiss franc, which, in turn, was seen as a key factor that prompted fresh selling around the USD/CHF pair on the recent days.




Important Levels to Watch for Today:

-        Resistance line of 113.874 and 114.158.

-        Support line of 113.306 and 113.022.

Commentary/ Reason:                                        

  1. The dollar was flat on the yen at 113.543.

  2. The U.S. benchmark 10-year T-bond yields which trades lower at 1.63% undermines the demand for the greenback, undercut after Federal Reserve Chair Jerome Powell on Friday went out of his way to say that the FOMC is not close to raising interest rates.

  3. Meanwhile disappointing Japanese earnings, with semiconductor-related shares among the hardest hit was weighting on the yen on Monday.

  4. The USD/JPY pair continues to pull away from the 114.51 price ceiling, moves lower for the fourth straight day and remains depressed amid weaker dollar demand.




Important Levels to Watch for:

-        Resistance line of 1.38488 and 1.38873.

-        Support line of 1.37239 and 1.36853.

Commentary/ Reason:

  1. Sterling was up 0.15% at $1.37706, had bounded ahead this month as traders scrambled to price in higher rates while inflation runs hot, with markets now eyeing a BoE hike next week.

  2. Moderation of Fed hike expectations, along with rising acceptance that the BoE will hike rates before the end of this year act as a tailwind for the GBP/USD pair. Global supply chain issue, Brexit, and rocketing gas prices have added to Britain's recent inflationary tilt.

  3. The MACD indicator holds above the midline. Any uptick in the MACD could bring more upside momentum for the spot. Alternatively, a break below the intraday’s low would result in the continuation of the prevailing trend with the first downside target at Tuesday’s low of 1.3723 followed by the 1.368 support zone.