Dollar turns firmer as the ebb and flow continues

Technical Analysis

The euro is retesting the low yesterday against the dollar now

EUR/USD H1 17-06
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The dollar is turning firmer against the rest of the major currencies bloc again as we see the ebb and flow continue to play out in the risk mood during European morning trade.

European stocks have now pared gains on the session with equities pulling back a little and that is helping the dollar to keep slightly firmer in the past hour of trading.

Notably, EUR/USD is back to test the low yesterday at 1.1228 with the key support region around 1.1213-27 now one to watch in case the downside accelerates further.

There’s still a lot of push and pull in the risk mood at the moment and that is resulting in the more noisy trading we are experiencing this morning in Europe.

Of note, cable is also down to session lows of 1.2524 currently as buyers were also rejected by the 100-hour moving average earlier as well.

Back to risk, I’d argue that the key risk event to watch today will be the US (state level) coronavirus case counts once again. That sparked a wave of risk aversion in trading yesterday and could very well cause more jitters today if we see another rise in cases.

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