Dollar eases to start the session as risk mood keeps more upbeat

Technical Analysis

Author: Justin Low | gbpusd

The dollar is dragged lower across the board in European morning trade

Cable is back above the 1.2700 level to post a high of 1.2715 while we are seeing AUD/USD also hit a session high of 0.7053 currently. Meanwhile, EUR/USD has cut its losses fro 1.1420-30 levels earlier to 1.1460 at the moment.

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GBP/USD D1 21-07
Of note, cable is now challenging to push above its 200-day MA (blue line) @ 1.2704 and a break above that will see buyers establish more control in the pair. Further resistance is then seen closer to 1.2800 thereafter.

Elsewhere, USD/CAD is also making a notable move on the day:

USD/CAD D1 21-07
Price action is moving back below 1.3500 and more noticeably, below its 200-day MA (blue line) @ 1.3512. That has been a level that has limited the downside over the last few weeks and a drop there could allow sellers to push towards the June low @ 1.3316.

The key focus right now is all about risk sentiment, especially with US equities having posted a solid start to the new week and the S&P 500 breaking above its own key resistance region at around 3,233 to 3,235 in overnight trading:

SPX

US futures are continuing to keep higher by ~0.5% as well and that alongside the more positive mood in European equities are pressuring the dollar to start the session.

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