Dollar higher on European morning trade

  • 02 June, 2021
  • 12:26 pm EEST

The dollar is trading higher on the day as it gains traction across the board. EUR/USD pair is going below 1.2200 to 1.2180 and GBP/USD sliding to 1.4125.

The changes are in line with the latest interplay in the major currency sector, as the dollar continues to drift nowhere while being technically weak.

The EUR/USD is seen falling again below its key hourly moving averages @ 1.2205-11. This fall could puts sellers in control for the time being.

Yet, there is some fluctuation zone support near 1.2170-75 until minimal support at 1.2160 and then the 1.2133 low from May 28th. The latter aligns with the 23.6 retracement level of the uptrend since late March, making it an important level to watch. In order for sellers to initiate a new potential downward trend, they must break below that level.

Looking at other currencies, the aussie and kiwi are also down on the day, with the AUD/USD now hovering around 0.7720. However, the pair has largely remained back in a similar trading range, ranging between 0.7700 and 0.7800 for the most part.
For the time being, that pretty much sums up the lack of confidence in the FX market.

Reliable Trading since 2012