Well, risk trades are on the retreat but it’s not really anything too outstanding after the gains yesterday. Major indices in Europe are down slightly for the most part, with only the DAX lower by a little over 1%. And even then, that is not a whole lot as the German benchmark index posted gains of 5% yesterday.
In the major currencies space, the dollar is keeping steadier compared to yesterday. However, it is not to say that traders are running back the hopeful optimism in its entirety. For now, traders look to be keeping the faith but are also guarded against pushing the positive risk momentum too far.
EUR/USD is up a smidge by 0.1% but it’s not really saying much as the chart still shows that sellers are holding the line at the key daily moving averages:
The confluence of the 100-day (red line) and 200-day (blue line) moving averages at 1.1672-85 remain the key line in the sand for the pair. Keep below that and sellers are still in it with a shout to try and push back against the latest bounce this week. But break above, and buyers will gain much needed breathing room to come up for air and look towards the 1.1800 to 1.2000 region again.
Elsewhere, we’re seeing the dollar hold slight gains against the yen with USD/JPY up 0.2% in looking towards 159.00.
It’s a solid bounce after having touched a low of 158.00 in overnight trading. However, the near-term momentum is still siding with sellers for now as seen with the hourly chart above. Buyers have some convincing to do in trying to push above the key hourly moving averages, to at least secure the near-term bias first.
Besides that, the changes among other dollar pairs are light. GBP/USD is up 0.1% to 1.3407 while AUD/USD is down 0.2% to 0.7030 on the day
