Daily Technical analysis for February 18, 2021petar skakalov
Dollar gives back some gains to start the session
The greenback is lower across the board as it surrenders some of its overnight gains with EUR/USD now moving up to 1.2067 from 1.2040 levels earlier in the day.
Meanwhile, GBP/USD has also broken free of its key near-term battle as buyers push past 1.3900 to establish a more bullish bias at the moment.
Elsewhere, AUD/USD has also moved up to 0.7775 from 0.7750 earlier as buyers look to push past its 100-hour moving average (red line) and yesterday’s high of 0.7772.
That said, key resistance remains at 0.7800-20 from the highs earlier this year and that is still the key line in the sand limiting any further upside momentum in the pair.
There is still a major push and pull ensuing with the dollar in the past two weeks and while the greenback has shown some fight in the last two days, things are still keeping rather vulnerable for the dollar at this juncture.
EUR/GBP falls to lowest levels since April last year as the technical breakdown continues
EUR/GBP threatens the April 2020 lows
The drop continues in EUR/GBP as the pair now slides to test the lowest levels since April last year around 0.8671-82. A break below that will open up the way for sellers to accelerate the downside momentum further with little in the way of a push towards 0.8500 next.
The weekly chart offers a better overview of the technical breakdown in the pair:
As things stand, the pound continues to benefit from added optimism on the vaccine front in the UK while the rollout in the Eurozone is still less than convincing.
The EU managed to book additional supply with Pfizer and Moderna yesterday but the rollout has been less than impressive with supplies still said to be backdated to December for Pfizer, based on a Reuters report yesterday.
The shove lower in EUR/GBP is also inadvertently lifting the pound as cable now climbs back above 1.3900 as buyers seize back near-term control on the day.
Source: Technical analysis