Technical Analysis

Cable extends drop as dollar holds firm on cautious risk tones

GBP/USD sellers threaten a break of the 200-hour moving average

ForexLive

Cable has fallen to a low of 1.3025 on the day as price now looks to be falling below the 200-hour MA (blue line). If sellers manage a break here, the near-term bias will then turn more bearish. The dollar, yen and swissie are picking up some light bids across the board on the session as US-China trade tensions resurface after a Reuters report here suggested that both countries are far away from a compromise.

S&P 500 futures have fallen off since and is now trading near the lows as a result:

E-minis 08-05

US 10-year yields have also fallen off to 2.44% now, down by 1.6 bps, and that has helped to see USD/JPY fall from 110.15 to 110.00 currently. Meanwhile, AUD/USD has also dipped lower to 0.7006 from 0.7015-20 earlier and USD/CAD is pushing towards session highs near 1.3475 at the moment.

As for cable, as noted above, the 200-hour MA is a key support level to watch for now. If sellers regain near-term control, the 1.3000 handle will be quickly eyed in the session ahead.

Articles You May Like

FX option expiries for July 17 NY cut
Fitch affirms Germany at AAA with a stable outlook
Ray Dalio: A paradigm shift is coming (and here is what’s to buy)
US stocks go out at the session lows
Teknik FOREX Mudah [Malaysia]

Leave a Reply

Your email address will not be published. Required fields are marked *