Dollar keeps weaker on the session as risk rally extends

Technical Analysis

Author: Justin Low | eurusd

EUR/USD climbs back towards the 1.1800 level

EUR/USD H1 11-08
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There's not much reprieve for the dollar in European morning trade today as the risk rally is pinning the greenback lower currently. European indices are pushing gains of over 2% while US futures are also higher by ~0.7% and that is keeping risk sentiment buoyed.

Elsewhere, 10-year Treasury yields are up by 2.3 bps to 0.599% and that is also helping with the risk mood and keeping the Japanese yen lower on the session.

For EUR/USD, price action is approaching 1.1800 again and nears a test of its 200-hour MA (blue line) @ 1.1804 with the 100-hour MA (red line) not far away @ 1.1815.

Keep below those levels and sellers will still stay in the game but move back above that near-term region and buyers will start to resume more control in the pair.

Elsewhere, cable is also now looking to try and keep above the 1.3100 handle:

GBP/USD H1 11-08
The 100-hour MA (red line) @ 1.3101 is also a key spot to watch as that helped to limit gains in trading yesterday, putting the focus back around the 200-hour MA (blue line) @ 1.3090 currently. Those will be key near-term levels to watch in the session ahead.

For cable, a breach above the key near-term levels above will pave the way for another potential test of the recent highs @ 1.3170-86.

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