Dollar continues to lag behind to start the session

Technical Analysis

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The greenback is the weakest performing major currency so far today

There isn’t much reprieve for the dollar following the losses yesterday, though we are seeing EUR/USD back away from levels near the 1.2000 handle at least to start the session.

The pair touched a high of 1.1997 earlier in the day but is now hovering around 1.1970. GBP/USD is still flirting with a potentially firm break of 1.3400, but did well to recover from losses in early trading yesterday.

Elsewhere, USD/CHF is hovering near fresh five-year lows just above 0.9000 while AUD/USD is trading at fresh highs since August 2018 around 0.7400.

USD/CAD is also down to its lowest levels since 31 December close to 1.3000:

USD/CAD W1 01-09

The figure handle remains a key psychological support level for now but another key downside area to watch will be the 31 December low @ 1.2952.

The technical picture continues to argue in favour of sellers as the downside momentum is very much intact. The berak below the 200-week moving average is adding more conviction for sellers to chase a further downside move currently.

Another key support region to watch is the trendline support that stretches back to the start of 2019 – as seen by the weekly chart – at around 1.2885.

But generally speaking, break below 1.3000 and the 31 December low @ 1.2952 and the slippery slope gets even more slippery for the dollar against the loonie.

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