TECHNICAL ANALYSIS

EUR / USD moves closer to 1.1900 as dollar remains looser on session


Dollar trades weaker despite slightly cautious risk tone

EUR / USD S1 17-11

Stocks are weaker, bonds are firmer, but the dollar is weaker. One of them is not like the others in trading today, but this is how the market plays out in European trading.

European stocks remain behind with US futures also down 0.5%, although Nasdaq futures hold up, approaching stable levels for now.

But 10-year T-bill yields are down 2bp to 0.886% and this weighs on USD / JPY and the pair slips to a session low of 104.17.

In the currency space, the dollar remains weaker overall as EUR / USD climbs to a session high of 1.1885 while GBP / USD pulls towards a high of 1.3270 with a bit of help from a Brexit pop earlier. here.

Elsewhere, the AUD / USD is trading a little higher at 0.7331 but still faces resistance closer to 0.7340 on the day.

Going back to EUR / USD, the 1.1900 grip will be a key point to watch as price action continues to favor buyers to test the level of the numbers at some point today.

Break above that and buyers could build more momentum heading towards daily resistance closer to 1.1965 and potentially 1.2000 thereafter.

However, just keep in mind that currency movement in Europe today is taking place against a much more cautious risk environment at this time.

Regional stocks are mostly a bit weaker and US futures also reflect some enthusiasm that is fading after yesterday’s vaccine optimism.

This could see the dollar hold its ground again with USD / JPY still above 104.00, GBP / USD still below 1.300, USD / CAD tightening its 200 hour moving average @ 1.3068, AUD / USD just right below the short term resistance of 0.7340, and NZD / USD is still holding around 0.6900.
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