Risk-off flows sees the index break the October high at 95.150

The dollar is seeing some good bids in the European session, advancing past the swissie as the second best performing major currency. It's even pared some losses against the yen as well with USD/JPY now back at 109.85 after having traded to a low of 109.55 at the start of the session.

The market is still very much abiding by risk-off tones on the day, with equities all in the red and bonds seeing strong flows as well. But the break here in the dollar cannot be understated.

Should the break hold into the close for the day, it's a good platform for buyers to build on in the coming sessions for the dollar. The 95.00 to 95.15 region has been a tough spot to break since the end of May but if bulls can follow through here, the rest of the way up looks a lot easier:

There is some minor resistance near the 96.00 region and the 96.32 level, but apart from that the key level to eye next will be the 23.6 retracement level @ 97.94. That's still a long way to go from current levels.

From a technical perspective, the next leg in the rally here is just about to begin provided the break of the 95.15 level is seen but do be reminded that today's moves are driven heavily by sentiment and headline risk.

Given that, you have to respect the possibility of a reversal should more market-friendly headlines come about and also if the market sees a change in risk sentiment all of a sudden. But do note I'm only talking about haven flows here, make no doubt that the dollar has been looking for a further extension back up after receiving support from the drop in the euro last week.

And a firm break above 95.15 could be what is needed to drive the next move higher.