Dollar buyers looking to seize more near-term control

The greenback is still leading gains in the major currencies space as risk is keeping on the more defensive side in European morning trade so far.

US futures are sitting lower by around 0.5% while European indices are down by ~1% as the optimism from the vaccine pop earlier in the week is quickly put behind us now.

EUR/USD H1 19-11

EUR/USD is keeping just below its 200-hour moving average as sellers are looking to establish more near-term control on a firm break below that. A move below 1.1800 will solidify the momentum as we look towards the end of the week.

GBP/USD H1 19-11

GBP/USD is also facing a test of its 200-hour moving average as price action is hovering just above 1.3200 around 1.3205-25 in the past hour or so.

Keep below the 200-hour moving average and the 1.3200 handle, and sellers will establish a more bearish near-term bias with minor support then seen around 1.3165-70 next.

AUD/USD H1 19-11

AUD/USD has already seen sellers seize near-term control on a push below the key hourly moving averages today and also now below the low yesterday of 0.7272.

There is mild support around the swing region of 0.7250-53 but last week's low of 0.7222 will be a key level to watch if sellers are to push the agenda ahead of the weekend.

E-minis 19-11

USD/CAD has also broken back above 1.3100 as the tug of war between buyers and sellers in and around the key hourly moving averages are starting to favour a push higher.

Price is now holding above 1.3100 and the 100-hour moving average but is running into some near-term resistance around 1.3116 with the week's high seen at 1.3124. If buyers are able to clear that, then last week's highs of 1.3170-73 will be the next level to aim for.

Looking at the risk mood in the session ahead, a lot will boil down to how price action plays out in the US cash market once again.

The S&P 500 closed below the key 3,600 level and its 2 September high of 3,588 in trading yesterday and that suggested that buyers have lost grip of the upside momentum established since Monday trading.


As such, sellers will have room to roam to the downside now as we fall back within the range defined in between 3,200 to 3,600 in the big picture.