<p style=““ class=“text-align-justify“>I’ll get straight to the point with this one as I already shared some thoughts about the dollar situation <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-shows-some-fight-as-selloff-momentum-wanes-20221117/“ target=“_blank“>here</a>. First off, the daily charts are starting to see the dollar put up some fight upon meeting key levels this week:</p><p style=““ class=“text-align-justify“>EUR/USD faltering at its 200-day moving average (blue line) remains one of the key technical developments in that regard.</p><p style=““ class=“text-align-justify“>AUD/USD failing to get above its 61.8 Fib retracement level at 0.6767 and now dropping back below its 100-day moving average (red line) is also another sign that the dollar selling on risk optimism is waning.</p><p style=““ class=“text-align-justify“>Likewise, USD/CAD is also showing a modest bounce upon testing its 100-day moving average (red line) earlier in the week.</p><p style=““ class=“text-align-justify“>But perhaps more importantly for the dollar now, is that we are also seeing a bit of a turn in the near-term charts:</p><p style=““ class=“text-align-justify“>Today itself, we are seeing the dollar break back against the 100-hour moving averages (red line) against the euro, yen, loonie, aussie and kiwi as seen above. That’s a sign that the near-term momentum is stalling as the bias now turns more neutral instead i.e. price action caught in between the 100 and 200-hour moving averages.</p><p style=““ class=“text-align-justify“>That is not to say that the selloff is over and the dollar will move higher from here but it is indicating that the dollar is showing some fight as the downside momentum stalls. This is where buyers and sellers will have to do battle in determining whether the next leg for the dollar will be one that is higher or lower (again) from here.</p>
This article was written by Justin Low at forexlive.com.
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