The continued selling in the dollar is the story so far today as the greenback comes under pressure in European morning trade. AUD/USD is up to its highest since 15 September as buyers look to keep a break above the 100-day moving average (red line) now.
That will be a massive tailwind for the upside leg to extend but there is resistance looming nearby in the form of the 61.8 Fib retracement level at 0.6767. That will be a key spot to watch on the week.
If buyers can break through that, there is little stopping a push back towards the 200-day moving average (blue line), now seen at 0.6951. All that will come before a potential run up against the key psychological resistance at 0.7000.
For now, it is hard to stop the momentum lower in the dollar as we are seeing the selling take place across the board. And it certainly doesn't help when Fedspeak is producing a rather incoherent message - at least for the time being.
