At some point on Wednesday, it looked like the dollar was bound to break down further. But a strong reversal yesterday is setting up for a continued move today, with the greenback keeping steadier across the board thus far. Of note, GBP/USD is facing a strong rejection after a brief push above the 1.3000 mark this week.
The pair has also fallen past its 23.6 Fib retracement level of the swing higher this month, now eyeing the 38.2 Fib retracement level at 1.2879 next. The 100 and 200-hour moving averages at 1.2975 and 1.2924 respectively are also giving way, putting sellers in near-term control.
Meanwhile, EUR/USD is also down another 0.2% to 1.0878 and testing its own 200-hour moving average currently. Break below that and sellers will also seize more near-term control there.
Besides that, the softer risk mood amid all the chaos from the global IT outage is helping to pin down the aussie and kiwi as well. AUD/USD is down 0.2% to 0.6690 in a fifth straight day of losses, with NZD/USD down 0.3% to 0.6024 in a fall to its weakest since May.
This article was written by Justin Low at www.forexlive.com.
