Cable is trading back above both its key hourly moving averages
And that is seeing buyers keep a more bullish near-term bias in the pair, as the dollar starts off the week on a softer note. As such, the momentum now shifts towards siding with cable buyers on the break of the 200-hour MA (blue line) @ 1.2412.
However, there is some near-term resistance from the 50.0 retracement level of the recent swing move lower @ 1.2448 with the daily trendline resistance also coming into play:
The latter sits around 1.2469 on the day but will be a key spot to watch before cable buyers set their sights on the 1.2500 handle next.
For now, dollar weakness continues to be the main theme to start the week. However, there is still much for the market to digest in the coming days so sentiment may yet still be choppy in the sessions ahead.
The focus right now is slightly towards reopening of major economies - particularly that in Europe - but we will still have Fed and ECB policy decisions as well as key earnings releases set for later on in the week.
On the latter, we will be seeing Alphabet (tomorrow), Boeing (Wednesday), Tesla (Wednesday), GE (Wednesday), Facebook (Wednesday), Microsoft (Wednesday), Amazon (Thursday), Apple (Thursday), and ExxonMobil (Friday) reporting this week.
