EUR/USD buyers look to seize back near-term control
The dollar is easing to fresh lows to start European morning trade, with EUR/USD rising towards 1.1850 now and challenging a potential break back above its 200-hour moving average @ 1.1841 (blue line):
This comes as European equities are also moving off earlier lows, with the DAX now up by 0.3% after having started off with slight declines earlier.
Elsewhere, US futures are continuing to creep higher with Nasdaq futures now a little over 1% higher on the session.
Back to EUR/USD, the pair had a bit of a topsy turvy day in US trading as ECB Lagarde’s remarks – or lack thereof – helped to send the euro higher towards 1.1900.
But sellers came in as the dollar firmed amid the faltering risk mood and that saw price action move back towards key near-term levels. The 100-hour MA (red line) held and we are now seeing buyers make a play for a move higher again.
Keep above the 200-hour MA and the near-term bias will turn more bullish.
As the dollar is slipping across the board, AUD/USD is also moving to test its own key near-term resistance currently:
Much like EUR/USD, the pair was sent for a bit of a back and forth ride yesterday but buyers are trying to make a play right now as price tests the 200-hour MA (blue line) @ 0.7291.
Keep above that and buyers will reclaim near-term control though there is the trendline resistance @ 0.7316 to contend with thereafter.
But keep below the 200-hour MA and the near-term bias stays more neutral for now.
All that being said, dollar and risk sentiment are likely to only receive further confirmation from Wall Street later today so it may be hard to go with strong conviction on any moves that we are seeing right now in European morning trade.