European equities are slumping heavily, extending its opening declines as the anticipation ahead of shutdowns in Germany and France is weighing on the risk mood today.
Though month-end flows and election focus are also part of the picture, a simpler narrative is that the technical look for European equities certainly isn't looking bright.
That has seen the dollar strengthen in the past hour, finally responding to the build up of news since overnight trading. AUD/USD has now fallen from a high of 0.7157 to 0.7118.
Notably, price action is attempting to breach the 100-hour MA (red line) @ 0.7125 as sellers look to wrestle back some near-term control. But any major downside momentum will only take hold if sellers are able to break below the 0.7100 handle.
Otherwise, the relative downside move now remains more modest at best.
The 200-hour MA (blue line) is also seen nearby @ 0.7103 currently.
As for buyers, it is hard to argue for any upside traction considering the risk mood in trading today. The failure to breach last week's high and the 61.8 retracement level @ 0.7158 also adds to reason that there is a lack of conviction for the time being.