TECHNICAL ANALYSIS

The dollar makes it easier to start the session while the mood for risk remains more optimistic


The dollar is dragged lower in European morning trade

Cable is back above the 1.2700 level to post a high of 1.2715 as AUD / USD has also hit a session high of 0.7053 currently. Meanwhile, the EUR / USD has reduced its losses from 1.1420-30 levels earlier to 1.1460 for now.

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GBP / USD D1 21-07

Of note, the cable is now struggling to break above its 200 day MA (blue line) at 1.2704 and a breakout above that will see buyers establishing more control in the pair. Further resistance is then observed closer to 1.2800 thereafter.

Elsewhere, the USD / CAD also makes a noticeable move throughout the day:

USD / CAD D1 21-07

Price action is coming back below 1.3500 and more noticeably below its 200 day MA (blue line) @ 1.3512. This level has limited the decline in recent weeks and a decline could allow sellers to push to the June low at 1.3316.

Right now the focus is on risk sentiment, particularly with US stocks posting a strong start to the week and the S&P 500 breaking through its own key resistance region at around 3233 to 3325 over the course of the week. night:

SPX

US futures continue to hold around 0.5% higher and that, along with the more positive mood in European stocks, is putting pressure on the dollar to enter the session.

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