Dollar keeps weaker to start European morning trade

Technical Analysis

Author: Justin Low | usd

A bit of a rinse and repeat of yesterday perhaps?

The greenback is keeping lower across the board to start the session, with the risk mood also reflecting a calmer mood after the retreat in trading yesterday.

EUR/USD is looking to keep above its 100-hour moving average, trading at 1.2265-75 while USD/JPY is seen easing back under 103.00 for the time being.

Elsewhere, AUD/USD is posting a modest advance as it trades up by 0.7% to 0.7720.
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AUD/USD H1 05-01
The pair climbed back above its 100-hour moving average (red line) in trading today, as buyers reestablish near-term control back above 0.7700.

However, there is some near-term resistance from the recent highs closer to 0.7740-42.

For now, the market is still keeping within the extremes of yesterday as real money flows continue to sort itself out to start the new year.

The Georgia runoffs will be a considerable factor later on in the day and I shared some thoughts on why that is mostly going to be a short-term "excuse" for the market to react in whatever manner it is going to earlier here.

As things stand, the dollar is keeping in a vulnerable spot but we'll still have to watch for the market's appetite later today to be certain of any further momentum.

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