Football's coming home.. England's progress to the RO16 in Qatar is certainly helping to lift the mood. I kid.
But with the dollar plunge yesterday, it has certainly reinvigorated the pair in a push from below 1.2000 to above 1.2100 today. Since the break higher in November, price action has been caught between its 100-day moving average (red line) and 200-day moving average (blue line). Right now, we are closing in on the latter with a 0.5% move up to 1.2117.
That puts the focus on buyers' appetite to chase the next upside leg, with the 200-day moving average at 1.2151 in the crosshairs. Keep below that and sellers will be able to try and stay in the game. But break above, and buyers will have renewed vigour to take a run at the August highs at 1.2276-93 before revisiting 1.2500 potentially.
The timing of the move comes alongside some other key technical moves against the dollar as outlined here:
- USD/JPY stays under heavy pressure on falling yields
- EUR/USD still has some work to do to firmly establish next upside leg
- AUD/USD looks to build on yesterday's technical break higher
And not forgetting, there's also another key risk event before the week comes to a close, with the US non-farm payrolls tomorrow. That might yet be a key catalyst for any moves before the weekend.