[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.21162 and 1.21599.
- Support line of 1.19744 and 1.19307.
Commentary/ Reason:
The euro soared 0.30% at $1.20797 on Tuesday, not far from a 1-week high touched in the morning.
EUR/USD recovered from overnight losses and moved higher on upbeat comments from ECB President Lagarde, who said the Eurozone economic recovery will pick up in the summer.
The euro progress also came after investors began to doubt about the scale of a recent rally driven by expectations of a faster pandemic recovery in the U.S. compared to elsewhere.
The pace of vaccinations in Europe were expected to pick up as AstraZeneca vaccine is finally arriving in EU countries as the bloc tries to speed up its inoculation campaign and put a crisis-ridden period behind it.
The rally in stocks also was negative for liquidity demand for the dollar.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.90396 and 0.90862.
- Support line of 0.89464 and 0.88998.
Commentary/ Reason:
The dollar retreated 0.27% against the Swiss franc on Tuesday, to settle at 0.89638 after touching a new weekly low since last Tuesday.
The recent rally in stocks was being the negative in demand for the dollar.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.37943 and 1.38643.
- Support line of 1.36543 and 1.35843.
Commentary/ Reason:
The British pound climbed to its highest since May 2018 to $1.37828 in earlier trade today. It last traded up 0.31% at $1.3782.
The pound jumped as recent rally in global stocks reduced demand for the dollar, which usually considered as a safe haven currency.
Comments on Monday from Cleveland Fed President Mester also weighed on the dollar when she said that the economic recovery from the pandemic will be slow and that Fed policy is going to be accommodative for a very long time. The ongoing pandemic continues to dampen economic growth, thus a dovish central bank policies will be negative for the dollar.
