Technical Analysis

Dollar eases further as risk-on sentiment gathers pace

Dollar and yen the laggards in FX

European indices have extended gains to roughly 1% across the board while US futures have also pushed to fresh highs on the day, with S&P 500 futures now up 0.7%.

That is keeping commodity currencies more buoyed with USD/CAD down over 100 pips to 1.2650 in a significant drop for the pair this week with sellers now seizing back near-term control and eyeing a push towards 1.2600 next.

Meanwhile, AUD/USD is also up 0.4% to 0.7274 as buyers wrestle back some near-term momentum after having fallen short of breaking its 100-hour moving average (red line) on numerous occasions since the start of last week:

That sees the near-term bias turn more neutral with further resistance coming in at the 200-hour moving average (blue line) @ 0.7596.

Elsewhere, EUR/USD is keeping higher around 1.1720 levels as price action is sandwiched by large option expiries at 1.1700 and 1.1745-50 on the day.

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