Technical Analysis

Dollar climbs as stocks retreat in European trading

The dollar is higher across the board as we see risk sentiment falter in European morning trade. S&P 500 futures are now down 35 points, or 0.9%, with European indices pushing 1% losses to start the session. USD/JPY in particular is making decent headway, now trading back above 136.00 and running into a test of its key hourly moving averages:

The confluence of near-term resistance at 136.26-38 is now a key area to watch as a break above that will see buyers seize near-term control of the pair, after having managed a defense around the 200-day moving average this week.

Meanwhile, EUR/USD is down 0.5% to 1.0625 and GBP/USD down 0.7% to 1.2335 at the moment. However, both pairs are still vying for a technical break higher on the week so it’s best to be aware of the technical levels highlighted here.

Elsewhere, AUD/USD is down over 1% to 0.6790 as buyers look to come up short in running into a test of its 200-day moving average, seen at 0.6898 currently.

The dollar’s rise today comes as we see stocks retreat, which certainly puts this scenario in consideration when trying to make sense of the post-Fed moves.

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