Dollar Keeps Mildly Weaker To Start The Session

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EUR/USD H1 22-06

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EUR/USD is trading closer to 1.1200 with the dollar seen slightly weaker across the board - except against the yen - but the losses for the greenback are rather modest still.

The risk mood remains more tepid with US futures having pared some of its earlier gains, but are holding at higher levels compared to the start of the day where there were some nerves and jitters observed - similar to the aussie and kiwi.

For EUR/USD, the pair is continuing to make a series of lower highs, lower lows while keeping under its key hourly moving averages. That still signifies that sellers remain in near-term control and keeping below 1.1200 will just add to that conviction.

However, there is some support from the recent lower trendline at around 1.1150 currently and that will be a spot to watch in case sellers start to push the agenda on a more solid run under the 1.1200 handle moving forward.

As for buyers, trying to work their way back towards the key hourly moving averages @ 1.1234 and 1.1275 will be the key first steps to try and wrestle back some control.

Overall, the dollar is keeping a little softer but there aren't any key changes to sentiment just yet. AUD/USD is a little higher at 0.6862 but still under its 100-hour moving average, while cable is also a tad firmer at 1.2385 but keeping below 1.2400.

Risk is still the key driver and we may be in store for a more tepid session in European morning trade up until we get fresh US coronavirus figures later in the day.