Technical Analysis

Dollar eases as risk keeps steadier on the session

The dollar slips to its lowest levels on the day currently

The greenback is now down to session lows across the board as it is losing ground amid the more positive risk sentiment in European morning trade.

European stocks are maintaining a modest advance, but gains are limited amid the worsening virus situation in the region. But US futures are reflecting solid gains, with S&P 500 futures seen up 0.9% and Nasdaq futures up by 1.1% currently.

That is weighing on dollar sentiment with EUR/USD rising to 1.1760 to test its 200-hour moving average and GBP/USD threatening a push above 1.3000.

Elsewhere, AUD/USD is also up to a high of 0.7110 as buyers are looking to move back above its 100-day moving average @ 0.7099 while NZD/USD is up to a high of 0.6644 – breaking its key hourly moving averages @ 0.6623-29 as buyers seize near-term control.
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Stimulus hopes are fueling investor optimism for now but given that a pre-election deal is not going to come, there’s every chance that risk trades could get hurt in the coming sessions. And that could see some of the flows away from the dollar here retrace.

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