There are just a few to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1750 level. The expiries hold close by to the 200-hour moving average of 1.1740 and may yet just play a role in terms of keeping price action more sticky in European morning trade.
However, trading sentiment is riding a lot on the dollar and general risk mood at the moment. That as US-Iran tensions flare up again over the weekend after Tehran signaled that the Strait of Hormuz is closed once more. So, that’s the bigger factor in play that will keep traders on edge as we get into the new week.
In the case of EUR/USD, the pair opened with a gap down but is holding at the 200-hour moving average for now. A break below that will see sellers seize back near-term control for the first time in two weeks, allowing for some added scope to venture towards 1.1700 next.
Then, there is one for GBP/USD at the 1.3500 level. And it is pretty much the same situation as well, with the pair’s own 200-hour moving average sitting at 1.3488 on the day. So, we are seeing price action keep thereabouts with the expiries at 1.3500 perhaps also set to play a role in terms of limiting price movements to the upside considering the dollar backdrop.
But as mentioned above, headline risks are paramount as we get into the new week. Any further suggestions from the US or Iran or even any murmurs about a peace deal or breakdown in talks will be enough to cause markets to jump
