[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.21210 and 1.21610.

-        Support line of 1.19919 and 1.19520.

Commentary/ Reason:

  1. The euro mostly traded flat against dollar on Wednesday.

  2. The common currency at $1.20866 after rising 0.34% in the previous session, when it rebounded from a 1-month low below $1.20.

  3. Dovish Fed comments on Tuesday pushed T-note yields lower and undercut the dollar. U.S. Fed Governor Lael Brainard saying there is still a lot of ground to cover on jobs and inflation. Also, San Francisco Fed President Daly said the Fed needs to be "patient" in its new policy strategy going forward and support the economy by "avoiding preemptively tightening monetary policy."

  4. Meanwhile, the ECB board member Fabio Panetta said the bloc's monetary authority should expand bond purchases or even increase the quota earmarked for them if needed to keep yields down.

  5. The euro also strengthened as Euro zone inflation was reportedly steady in February, taking a break in what is likely to be a temporary but sharp spike in consumer prices in the coming months, as more economies reopen.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.91968 and 0.92204.

-        Support line of 0.91204 and 0.90968.

Commentary/ Reason:

  1. The dollar strengthened on Wednesday against the Swiss franc, last stood at 0.90594.

  2. The dollar climbs as the U.S. economic recovery is seen on a firmer ground. Fiscal stimulus has fuelled market expectations for a rapid recovery, with President Joe Biden close to passing a US$1.9 trillion spending package.

USDCHF1501"]

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.40035 and 1.40493.

-        Support line of 1.38552 and 1.38093.

Commentary/ Reason:

  1. The British pound steadied on Wednesday, after weakened to a 1-week low against the dollar on Tuesday, to stood at $1.3870 on the day.

  2. An easing of the COVID-19 pandemic in the U.S. has bolstered optimism that lockdowns and restrictions on the U.S. economy will soon be lifted, which is giving stocks and the dollar a boost.

  3. While the UK government also does not plan to change its lockdown rules, expected to be in June, despite several cases of new virus variant.

  4. Traders turn eyes as the British finance minister Rishi Sunak is expected to extend the jobs support program until at least May in his 2021 budget, expected to be presented later this week.

GBPUSD