Dollar on the back foot to start the sessionpetar skakalov
Risk sentiment keeps firmer as investors brush aside any concerns
Rising coronavirus cases, deaths in the US and the ongoing US-China tensions aren’t doing much to deter market confidence this week, with the risk mood keeping firmer once again as we begin European trading today.
Wall Street investors are also braving past earnings season without much of a hitch and that is keeping markets more optimistic for the time being.
Granted, the US-China theatrics are mainly just “for show” but the fact that equities are rather unfazed by the whole situation does say a lot about the current market mood.
In the currencies space, the dollar is weaker to start the session with EUR/USD starting to approach the 1.1600 level once again.
The 50.0 retracement of the swing move lower from 2018 rests at 1.1595 so the region of 1.1595-00 is still the key area to watch at the moment for the pair.
Break above that and buyers will be able to open a further leg/range higher.
Elsewhere, the dollar is also keeping weaker against the aussie and kiwi but AUD/USD is still settling under 0.7200 for now. NZD/USD is on approach to 0.6700 but the 31 December 2019 resistance at 0.6756 is still the key area to watch.
Meanwhile, USD/CAD is also keeping under 1.3400 upon a break of its 200-day moving average earlier in the week. Further support is seen around the region of 1.3350-60 before the 10 June low at 1.3315 comes into play for the pair.
Source: Technical analysis