[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.19595 and 1.19780.

-        Support line of 1.18701 and 1.18426.

Commentary/ Reason:

  1. The euro stood bounced away from its 2-week low of 1.18704 on Monday, to stay at $1.19257, though still down 0.05%.

  2. The euro was little changed at today’s opening amid cautious investors after economic powerhouse the US, the UK, the EU, and Canada imposed sanctions against China due to human rights concerns.

  3. The euro was under pressure on concerns that new pandemic curbs and slow vaccine rollouts in Europe will slow a recovery. Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the virus on the continent.

  4. U.S. economic data was bearish for the dollar after the U.S. Feb Chicago Fed national activity index unexpectedly fell to a 10-month low. Also, Feb existing home sales fell 6.6% to a 6-month low.

  5. The immediate focus is on the Congressional testimony by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later today.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.93107 and 0.93464.

-        Support line of 0.91952 and 0.91596.

Commentary/ Reason:

  1. A decline in risk appetite weighed on the Swiss franc. The greenback rose 0.15% to stood at 0.92442 franc. Though not enough to reciprocate a 0.63% loss yesterday.

  2. The dollar’s attraction was boosted as U.S. Federal Reserve officials appeared to tolerate rises in bond yields in recent weeks.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.38883 and 1.39120.

-        Support line of 1.38117 and 1.37880.

Commentary/ Reason:

  1. The dollar edged up 0.2% against the British pound to $1.38345.

  2. A speedy rollout of COVID-19 vaccines in the U.S. and the Biden Administration’s $1.9 trillion stimulus are seen lifting growth, driving up bond yields and drawing investors.

  3. The dollar’s attraction was further boosted as U.S. Federal Reserve officials appeared to tolerate recent rises in yields - turning the focus now to Congressional testimony by Fed Chair Jerome Powell and Treasury Secretary Janet Yellen later on Tuesday.

  4. The greenback also has been supported by a paring of bets for its decline, with speculators cutting net short positions.

GBPUSD