Dollar selling resumes as election results continue to weigh

Technical Analysis

Author: Justin Low | usd

The greenback hits a session low against the major currencies bloc


ForexLive
A fresh wave of dollar selling is sweeping across now and the greenback has been marked lower against the rest of the major bloc. AUD/USD now touches a high of 0.7282 on the day and looks towards the 0.7300 handle now.

EUR/USD and GBP/USD has also moved up to session highs of 1.1482 and 1.3159 respectively as the dollar remains offered on the session. NZD/USD is nearing the day's high of 0.6779 again while USD/CAD and USD/CHF touches a low of 1.3101 and 0.9979 respectively.

Traders and investors are still digesting the results of the US midterm elections and so far the consensus is for a weaker dollar still. That's not likely to change until we get into US trading but watch out for potential breaks that could lead to further squeeze in the dollar.

For EUR/USD, that's 1.1500. But I'd be more keen on the AUD/USD:


Price is threatening a break of the 100-day MA (red line) now and hold above that, it will be the first time since March that buyers will have successfully traded above the key level on a daily break. And if the September high of 0.7315 gets broken, it will put an end to the bearish pattern (lower highs, lower lows) for the year and potentially lead to a further squeeze.

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