Dollar continues to lag behind to start the session

Technical Analysis

The greenback is the weakest performing major currency so far today

There isn’t much reprieve for the dollar following the losses yesterday, though we are seeing EUR/USD back away from levels near the 1.2000 handle at least to start the session.

The pair touched a high of 1.1997 earlier in the day but is now hovering around 1.1970. GBP/USD is still flirting with a potentially firm break of 1.3400, but did well to recover from losses in early trading yesterday.

Elsewhere, USD/CHF is hovering near fresh five-year lows just above 0.9000 while AUD/USD is trading at fresh highs since August 2018 around 0.7400.

USD/CAD is also down to its lowest levels since 31 December close to 1.3000:

USD/CAD W1 01-09

The figure handle remains a key psychological support level for now but another key downside area to watch will be the 31 December low @ 1.2952.

The technical picture continues to argue in favour of sellers as the downside momentum is very much intact. The berak below the 200-week moving average is adding more conviction for sellers to chase a further downside move currently.

Another key support region to watch is the trendline support that stretches back to the start of 2019 – as seen by the weekly chart – at around 1.2885.

But generally speaking, break below 1.3000 and the 31 December low @ 1.2952 and the slippery slope gets even more slippery for the dollar against the loonie.

For bank trade ideas, check out eFX Plus

Articles You May Like

Eurozone negotiated wage growth seen accelerating in Q3
Breakout Stocks: How to trade Indian Hotels, Nalco & Fortis Healthcare on Friday?
USDCAD Technical Analysis – We are at a key support zone
Sterling Gains Slightly as UK Inflation Accelerates; Euro Struggles Despite Wage Surge
Sentiment Stabilization Reverses Yen Gains and Halts Gold’s Rebound

Leave a Reply

Your email address will not be published. Required fields are marked *