DAILY TECHNICAL ANALYSIS FOR MARCH 01, 2021petar skakalov
EUR/USD posts fresh session lows as dollar steadies after slight softness earlier
The dollar is recovering ground across the board
In turn, the bids in the dollar is pushing EUR/USD to fresh lows since 18 February as the Friday lows give way and that puts some pressure on support closer to 1.2023.
Just take note that the 100-day moving average in the pair comes in at 1.2029 and that will be a key spot to watch in case sellers push the agenda this week.
Elsewhere, the dollar has also trimmed losses against the pound as cable falls to 1.3940 levels from near 1.4000 earlier while USD/CAD is back up to 1.2700 from 1.2675 earlier.
AUD/USD has also retreated slightly to 0.7740 from 0.7770 and NZD/USD is down to 0.7260 from the highs of 0.7290 at the tail end of Asian trading.
USD/JPY remains more constricted around 106.50-60 with large expiries in play today.
Pound keeps a little higher but buyers need to do more to recapture upside momentum
Sterling keeps steadier after the correction to the upside move last week.
Cable has backed off earlier highs closer to 1.4000 as the pound loses a bit of its earlier momentum but is still keeping higher so far today.
The slight retreat also comes as we see EUR/GBP back off against a test of its 100-hour moving average (red line) and 5.0 retracement level of the swing move higher towards the latter stages of last week @ 0.8636-39.
For cable, dollar sentiment is also part and parcel of the equation and that is slightly underpinning the pair amid the better risk mood this morning.
However, for EUR/GBP, it reaffirms that despite the push back lower under 0.8700, sellers (pound buyers) still have more work to do in order to regain the upper hand.
For now, the key near-term levels highlighted above are proving to a be key impediment to that as the downside push in EUR/GBP stalls.
If sellers are able to keep below the 200-hour moving average (blue line) @ 0.8650, that will be a welcome sign to try and push the key support highlighted above.
But break above that and buyers (pound sellers) will still keep some ground in the latest corrective move seen since Thursday last week.
Source: Technical analysis