Dollar slips a little further to start the session

Technical Analysis

Author: Justin Low | eurusd

It is tough to pick a bottom in the dollar at the rate that things are going

The greenback is easing further on the week, with EUR/USD climbing to a session high of 1.2138 - the highest level since April 2018. AUD/USD is also extending gains above 0.7400 to 0.7436 currently as the pair moves to its highest level since August 2018.

Elsewhere, NZD/USD is inching towards a test of 0.7100 while USD/CAD is also slumping further towards 1.2900 as the session gets underway.

There is just not much, if not any, shelter for the dollar at the moment as the technicals start to tumble one after another. Looking at the chart for EUR/USD:

EUR/USD D1 03-12
The pair is now clearing resistance around the 23.6/76.4 retracement level @ 1.2103 and while there is some minor resistance around 1.2155, there is little in the way stopping a push towards 1.2500 potentially upon the break this week above 1.2000.

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While there is an argument to be made for year-end flows and position squaring, the big picture narrative still doesn't bode well for the dollar. Fed chair Powell also came out to suggest that QE is in a "sweet spot" so to speak, so there you go.

From a technical perspective as well, it is tough to fight the moves so far this week.

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