Dollar, yen keep firmer amid the softer risk mood

Technical Analysis

EUR/USD slips to a session low of 1.1782, nears the 100-hour moving average

EUR/USD H1 14-08
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The dollar is keeping a little firmer on the session as it maintains slight gains against the likes of the euro, franc, loonie, aussie and kiwi currently. EUR/USD is seen slipping to a session low of 1.1782 and nears a test of the 100-hour MA (red line) @ 1.1779.

Keep above that and the near-term bias stays more neutral – stuck between the key hourly moving averages – but break below, and sellers will start to seize more control.

Key support is still seen around 1.1700-10 though, which has served as a floor for the pair over the past three weeks of trading.

The risk mood is still keeping on the defensive with European equities down by more 1-2% across the board, while the yen is also staying bid amid a fall in Treasury yields. 10-year yields are down by 3 bps to 0.69% and that is pinning yen pairs lower.

USD/JPY is backing off another test of 107.00 earlier today and is trading at the lows currently around 106.69 – near-term support closer to 106.60.

Elsewhere, AUD/USD is also seen a little lower around 0.7140 and backing away from a test of its own 100-hour MA (red line) earlier in the session:

AUD/USD H1 14-08

Sellers are still keeping near-term control as such but there is some minor support around 0.7132-36, before key support is seen closer to 0.7100-10.

Meanwhile, upside in the pair has been limited by resistance around 0.7180-90 this week and that remains the key line in the sand to watch for any near-term momentum for buyers.

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