Dollar weakens further on the session as stocks extend their climb

Technical Analysis

Author: Justin Low | usd

The greenback slips to its lowest levels on the day

AUD/USD H1 22-06
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European equities are at their best levels on the day with the DAX pushing gains of a little over 0.2% while US futures are now higher by 1% on the session.

That in turn is continuing to apply a headwind on the dollar in trading today as we see the greenback ease to its weakest levels on the day now.

EUR/USD is up to 1.1225 while GBP/USD is up to a session high of 1.2434.

In particular, AUD/USD buyers are looking to challenge for near-term control as they race above the 100-hour MA (red line) and are testing the 200-hour MA (blue line) @ 0.6886.

Break above that and buyers will seize back near-term control in the pair, though there is still some resistance from the swing region around 0.6900-12 next.

Risk remains the key driver in trading today and so far the market is shaking off the concerns from the coronavirus that we saw towards the end of last week. The battle between dip buyers and coronavirus fears is seeing the former take charge to start the day.

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