With key technical levels holding, the dollar is pushing back in trading today and is moving up to fresh highs since the end of last week. EUR/USD is now down 0.6% to 1.0155 as price threatens to fall back below its 200-hour moving average at 1.0161:
A drop below that will see sellers seize near-term control and will put pressure on minor support around 1.0140-55 next. If that gives way, the technical picture will turn more bearish for the euro with a look towards parity again perhaps. That said, it will all come down to the Fed tomorrow for any real conviction for such a move.
Meanwhile, GBP/USD is also trading down to just below 1.2000 and testing its 100-hour moving average at 1.1997 as outlined here.
Commodity currencies are also not spared from the dollar’s wrath with AUD/USD down 0.3% to 0.6935 on the day after the high earlier touched 0.6983 and testing the 50.0 Fib retracement level:
These are all key levels that were highlighted since the end of last week and the dollar is certainly showing that it is standing its ground. I wouldn’t chalk up the moves to any headlines on the day as this looks to be more like positioning plays ahead of the Fed tomorrow.
