Dollar keeps weaker to start the session

Technical Analysis

Author: Justin Low | usd

No reprieve for the greenback across the board

The dollar is in an unfavourable spot to start the day as risk is faring better and there is added weakness in the currency as we see gold rally to fresh all-time highs.

The decline in the dollar from overnight trading is extending as such and the technical signs aren't looking all too good at the moment:
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EUR/USD H1 05-08
EUR/USD defended a drop under its 200-hour MA (blue line) yesterday before rising back to move above its 100-hour MA (red line) as buyers seize back near-term control.

Holds above that level @ 1.1793 and the 1.1800 handle and buyers will have firmer conviction to try and retest last week's highs closer to 1.1900 in the sessions ahead.

GBP/USD H1 05-08
Cable also saw roughly similar price action to EUR/USD as price dipped briefly under 1.3000 before climbing back and moving above its own 100-hour MA (red line).

That puts buyers back in near-term control and they are now testing some minor resistance around 1.3105-13. Break above that and buyers can potentially start to look towards last week's high @ 1.3170 and then the 9 March high @ 1.3200.

AUD/USD H1 05-08
AUD/USD was weaker to start the week but buyers have turned things around by seizing back near-term control in a move above its key hourly moving averages.

The drive higher largely comes on the back of a weaker dollar but it is what it is, and this puts buyers back in the driver's seat in search for a daily break above 0.7200.

That will remain the key line in the sand over the next few sessions should the dollar weakness gather pace, with the market also keeping an eye on Friday's non-farm payrolls for further clues ahead of the weekend surely.

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