Important Levels to Watch for:

-        Resistance line of 1.22147 and 1.22809.

-        Support line of 1.20823 and 1.20161.

Commentary/ Reason:

  1. The euro slipped slightly 0.06% to $1.2129 on Tuesday.

  2. The common currency took a knock from slumping German business morale. The Germany Ifo economic institute's business climate index fell to 90.1 in January from higher reading of 92.2 in December.

  3. Concern that lockdowns may be tightened and extended in Europe also weighed on EUR/USD.

  4. Meanwhile, political instability in Italy extended, as Italian Prime Minister Conte is reportedly to resign.

  5. While in the U.S., the Democrats and Republicans are discussing a new $1.9 trillion in U.S. coronavirus relief, and the U.S. Fed is expected to maintain its strong commitment to accommodative monetary policy when it holds its first policy meeting later this week.




Important Levels to Watch for:

-        Resistance line of 0.89013 and 0.89247.

-        Support line of 0.88255 and 0.88021.

Commentary/ Reason:

  1. The dollar edged higher against the Swiss franc on Tuesday, rose 0.08% on the day to stay at 0.88882 after overnight’s close of 0.34% higher.




Important Levels to Watch for:

-        Resistance line of 1.37603 and 1.38383.

-        Support line of 1.36043 and 1.35263.

Commentary/ Reason:

  1. Sterling slipped 0.16% to $1.3652 on Tuesday, extending to 3-day straight decline.

  2. The British pound is weighted down as the Prime Minister Boris Johnson is looking at toughening border quarantine rules, because of the risk of "vaccine-busting" coronavirus variants.

  3. However, the PM on Friday said there was evidence a new variant of COVID-19 discovered late last year could be associated with higher mortality.

  4. Problems in some vaccine rollouts also weighed on sentiment.