Monday’s trading starts with more pressure on the dollar

After Friday’s sell off, the Dollar continues to trade lower against major currencies at thebeginning of this week.

The current market sentiment indicates risk appetite is high, stimulating investors to continueand sell the dollar.

This morning we can see EURUSD aiming for its major resistance level at 1.3. This level servedtrue barrier for the pair in the last six months. Many attempts to break above 1.3 did notreach higher than 1.3080 before a serious correction took place. It will be interesting to see if thecurrent environment can supply enough fuel for EURUSD to break and trade clearly above as a 1.3080.

GBPUSD however, turns to be much more resilient this Monday, already trading around 1.42.
If the current dollar sentiment will continue to favor risk, we can expect to see 1.45 get printedthis week.

Tip of the day: try to keep a straight line with the market, that is, if the dollar is weak againstmost majors, don’t go ahead and buy it. Pay attention to EURGBP, as soon as the dollar willregain some of its power back, this pair should head up once more. Conversely, if the Poundcontinues to trade higher vs the dollar, while EURUSD is still not able to clearly breach 1.3 andbeyond this should take EURGBP to lower levels today.