Dollar on the back foot as positive risk vibes continue to reverberate

Technical Analysis

Author: Justin Low | eurusd

The dollar slips to start European morning trade

EUR/USD D1 05-06
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European and US stock futures are pushing higher and that is feeding to the more positive risk vibes in the market as we look to get things going on the session.

That in turn is helping to put pressure on the dollar - and also the yen - with EUR/USD climbing to fresh highs since 10 March to 1.1378. In turn, AUD/USD has also touched the 0.7000 for the first time in over five months - last since 2 January.

Meanwhile, cable is also bid to 1.2664 and runs into a test of its 200-day moving average.

All of this comes as the equities push continues to run after a mild breather in trading yesterday. US futures are keeping near 1% gains at the moment.

Another key spot to watch is the Treasuries market as we start to see 10-year yields breakout as well. Treasuries have been a non-factor in the market for over two months amid the rangebound play but they look to be starting to play ball now.

In turn, this could put added pressure on the yen and lift yen pairs even further amid the technical break as well as ongoing focus on the reopening of economies.

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