EUR/USD testing waters below 1.1800 once again
The dollar is advancing slightly on the session, as we see EUR/USD start to move back towards the 1.1800 handle as the pair falls to a session low of 1.1795.
Elsewhere, GBP/USD is also nearing 1.3000 and AUD/USD is down 0.5% close to 0.7200. Gold is also down by ~0.5% to $1,920 amid the slight nudge higher in the greenback.
There isn’t much of a catalyst for the move but it is a slight continuation of sentiment from the weekend with the dollar opening with a slight gap higher following the news from China that the PBOC is taking action to curb the recent strength in the yuan.
But key levels are not really being broken yet, with EUR/USD buyers still very much keeping near-term control. A push back below 1.1800 will dent buyers’ optimism but they still hold a more bullish bias with the 100-hour moving average seen only at 1.1777.
Unless the dollar manages a couple of key technical breaks across multiple fronts i.e. GBP/USD below 1.3000, AUD/USD below 0.7200, gold below broken trendline resistance at $1,908 currently, there isn’t much that really stands out in the moves so far.