Dollar eases further as risk-on sentiment gathers pace

Technical Analysis

Author: Justin Low | audusd

Dollar and yen the laggards in FX

European indices have extended gains to roughly 1% across the board while US futures have also pushed to fresh highs on the day, with S&P 500 futures now up 0.7%.

That is keeping commodity currencies more buoyed with USD/CAD down over 100 pips to 1.2650 in a significant drop for the pair this week with sellers now seizing back near-term control and eyeing a push towards 1.2600 next.

Meanwhile, AUD/USD is also up 0.4% to 0.7274 as buyers wrestle back some near-term momentum after having fallen short of breaking its 100-hour moving average (red line) on numerous occasions since the start of last week:

AUD/USD H1 23-09
That sees the near-term bias turn more neutral with further resistance coming in at the 200-hour moving average (blue line) @ 0.7596.

Elsewhere, EUR/USD is keeping higher around 1.1720 levels as price action is sandwiched by large option expiries at 1.1700 and 1.1745-50 on the day.

The dollar is not getting much comfort despite a more hawkish Fed as Treasury yields are still drifting. 10-year yields are pretty much flattish at 1.334% currently.
Invest in yourself. See our forex education hub.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose