The dollar selling is persisting in European morning trade with the greenback under pressure across the board. The key technical levels from the previous posts are being contested now and we could see another leg lower in the dollar stretch out in the sessions ahead if we do get some daily closes above those key levels mentioned:
- USD/JPY remains heavy to start the new week
- Dollar slightly on the backfoot to start the session (GBP/USD, USD/CAD, AUD/USD, EUR/USD)
Cable is trading up 0.6% to 1.2250 and contesting a firm daily close above 1.2200 as well as the 50.0 Fib retracement level at 1.2213. Meanwhile, USD/CAD is currently testing its 100-day moving average at 1.2773. Then, AUD/USD is looking for a firm daily break above 0.7000 to open up the path towards testing the 61.8 Fib retracement level at 0.7053 and the 16 June high at 0.7069. Elsewhere, EUR/USD is closing in on the 50.0 Fib retracement level at 1.0283 - which remains a key topside resistance since the middle of last month.
