Dollar keeps a little weaker to start the session

Technical Analysis

Author: Justin Low | eurusd

The greenback is lagging on the new week so far

EUR/USD H1 13-07
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As the risk mood keeps more positive for now, the dollar is seen weaker across the board. However, losses are still modest for now and not really extending to anything overwhelming as key technical levels are still largely intact.

AUD/USD is still keeping under 0.7000 even as buyers are keeping more near-term control on a push above its key hourly moving averages. Meanwhile, cable is still seen trading under its own 200-day moving average despite a slight nudge higher today.

As for EUR/USD, buyers are also holding near-term control with the bias staying more bullish above the 100-hour MA (red line) but gains aren't really testing the key resistance region around 1.1340-50 - the area which has limited upside since mid-June.

As such, it is tough to read much into the weakness for now unless equities threaten a further surge which will weaken the dollar in the sessions ahead.

That is pretty much the story in the currencies space as we get things underway.

Looking out further this week, the risk mood will have to brace itself for earnings season in the US and another barrage of coronavirus headlines once we get past the usual Monday low case count i.e. weekend effect.

As for the euro, all eyes will turn towards the 17-18 July EU summit and whether or not we will see a compromise on the recovery fund. The ECB meeting on Thursday should be a rather non-event given the current market situation.

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