US dollar hits fresh lows
The crowded long-dollar trade continues to unwind as the market loses faith in near-term Fed rate hikes. Sentiment could easily reverse again if US economic data improves but for now the market is taking a wait-and-see approach.
Momentum is what matters at the moment and there is little to halt the decline of the dollar. EUR/USD has hit 1.0970 and the 1.1000 level along with last week's spike high of 1.1040 are now in focus. Greg also takes a close look at the Australian dollar technicals.
Two near term spots to watch:
- USD/CAD has just edged through 1.2500 on the downside and a break below 1.2490 could hit stops.
- USD/JPY is eyeing the session low of 119.60 and is similarly vulnerable