Dollar firms as risk turns slightly softer to start the session

Technical Analysis

Author: Justin Low | audusd

AUD/USD eases to a session low of 0.6854

AUD/USD H1 30-06
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The greenback is pushing slight gains to start the session, with the risk mood keeping softer after a bit of a dip following renewed lockdown measures imposed by the Australian state of Victoria for some areas in Melbourne.

That has seen risk ease a little, with the aussie taking a mild hit with AUD/USD falling from a test of its key hourly moving averages around 0.6876-81 to a low of 0.6854.

In turn, the dollar is also keeping firmer as the currency pushes gains against the euro and pound to start European morning trade. EUR/USD is down to 1.1215 while cable is chasing a firm move under 1.2300 to a low of 1.2275.

Just be mindful that we are still navigating through month-end and quarter-end flows, so things can get a little choppy in the sessions ahead.

For now, the dollar is keeping firmer as we see AUD/USD back off from yet another test of its key near-term levels since Thursday last week.

That said, downside support around the 0.6845-50 region has held firm over the past two trading days and will once again be a key area to watch in the day ahead.

As for upside levels, the key hourly moving averages - now seen at the region of 0.6876-81 - remain the line in the sand followed by resistance around 0.6890-00 with a decent chunk of expiries rolling off at 0.6900 today as well.

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