Dollar holds steadier to start the new week

Technical Analysis

Author: Justin Low | eurusd

The pound is weighed lower as the UK goes back into lockdown

Major currencies aren't doing a whole lot to start the day, with the greenback keeping steadier across the board for the most part. The ranges are relatively narrow, though the pound is the active mover with cable knocking on the door of 1.2900.

GBP/USD D1 02-11
The slight nudge lower still sees sellers in near-term control as price tests some support around the 1.2900 region with further support then seen closer to the 100-day MA (red line) @ 1.2878. The latter will be a key spot to watch in trading this week.

Despite some murmurs of optimism in Brexit talks, all of that is being overshadowed by the news of the UK returning to lockdown until 2 December.

Meanwhile, the euro is also marginally lower within a 25 pips range so far today:

EUR/USD D1 02-11
Notably, sellers are looking to keep a push below the 100-day MA (red line) @ 1.1657 and a firm break below that will allow them to establish more control in the sessions ahead.

Further support is seen closer to the late September lows @ 1.1612-27 now.

Elsewhere, AUD/USD is testing support at 0.7000 while USD/CAD is also contesting its own 100-day moving average at 1.3328 as oil prices are being dragged lower amid the more pessimistic virus developments in major economies over the past few weeks.
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