Dollar erases losses as risk aversion grips

Technical Analysis

Author: Justin Low | eurusd

The greenback pares losses from earlier in the day

EUR/USD H1 21-09
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The dollar is nudging a little higher on the session and has erased earlier losses against most major currencies barring the Japanese yen. This comes as we see the risk-off mood accelerate with the DAX now sliding by 2% and US futures down by a little over 1%.

Despite USD/JPY taking a crack under its 31 July low @ 104.19, the greenback is also seeing some inflow for now as risk aversion grips the market.

For EUR/USD, we are seeing price action challenge some key near-term levels with the confluence of the 100 and 200-hour MAs @ 1.1839-40 called into question.

Keep below that and the near-term bias switches to being more bearish instead. However, key daily support closer to 1.1750 is still holding and that helped to stop the downside push seen last Thursday as well.

Buyers defended the 200-hour MA (blue line) on Friday but amid the risk-off mood, sellers are trying to push their own agenda on the session now.


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