The pair was testing support near 1.2400 at the start of the session with stocks opening lower but amid the risk recovery in the past hour, the pair has bounced back to session highs of 1.2464 as dollar gains ease up as well.
Notably, buyers are looking to try and push for a break back above the 100-hour MA (red line) @ 1.2442 currently. Keep a break above that and the near-term bias turns more neutral. But stay below that and the near-term bias will remain more bearish instead.
The turnaround in European equities is also helped by this announcement from the ECB, which the timing of things remains a bit of a question mark.
The market generally is flooded with liquidity now so to have this facility run all the way through to June 2021 is odd, but perhaps it is an indication that they foresee that there are further financial complications that may arise moving forward.
Nonetheless, it is helping with the market mood for now but US futures are still keeping in negative territory for the most part. The focus on coronavirus fears in the US could still largely override the positive momentum seen currently.
Back to cable, I'd only be more convinced of any real upside potential if buyers can work their way back towards the 200-hour MA (blue line) near 1.2500.
Otherwise, it may be tough for buyers to keep a more bullish conviction considering the risks that lie ahead with US coronavirus figures still yet to come later today.
Not to mention that we're still sort of stuck between this rangebound play in equities and the dollar in general since last week.