Dollar firms further on the session as risk aversion deepens

Technical Analysis

Author: Justin Low | eurusd

EUR/USD slips to a session low of 1.1731

European equities are extending to fresh session lows, with the DAX now seen down by 2.4% while US futures are also posting fresh lows down by a little over 1%.

The dollar is keeping firmer across the board as a result, with gold also seen slipping to a low of $1,945 - down 1% - and silver falling by close to 4% once again currently.

For the case of EUR/USD, it brings the focus back to the near-term chart:

EUR/USD D1 30-07
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Buyers have seen the recent upside momentum stall around 1.1700 levels this week and the push lower today brings into question the near-term trendline support @ 1.1735 now. Just below that is the 100-hour MA (red line) @ 1.1721.

Those will be the key levels to watch in case the dollar starts to gather more momentum ahead of the weekend. The near-term chart in gold is also one to take note of with the 100-hour moving average seen at around $1,940.

Break below those levels and sellers will regain more near-term control by shifting the more bullish bias seen in both EUR/USD and gold now to being more neutral instead.

Elsewhere, Treasury yields continue to be a key spot to watch as well today as 10-year yields are falling further towards 0.55%. The low in April was 0.539% and a break below that could set off a fresh wave of risk averse flows and yen buying.

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