Technical Analysis

Dollar firms in countdown to non-farm payrolls

Alongside the yen, the pound is a notable laggard today as cable falls further following a breakdown yesterday below 1.2000. The drop also took out support from the 23.6 Fib retracement level of the swing higher since September, seen at 1.1953. That gives sellers with more scope to chase a further downside move – potentially looking at the 100-day moving average (red line) next at 1.1663.

But of course, any further downside leg requires vindication from the US data later today. That will be key for dollar sentiment as the new year finally looks to get rocking.

Elsewhere, EUR/USD is down 0.2% to 1.0500 while AUD/USD is also down 0.2% to 0.6732 at the lows for the day. The latter is continuing to see a rejection of its 200-day moving average play out for now.

In broader markets, equities are tentative with S&P 500 futures flat and Treasury yields are also mostly little changed at the long-end of the curve so far today.

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