The more defensive risk mood is underpinning the greenback
The dollar is gaining to fresh highs on the day to start European morning trade, pushing EUR/USD down to 1.2113 and GBP/USD down to 1.3620.
It is also keeping a modest advance against the commodity currencies, as we see USD/CAD rise to 1.2779 while AUD/USD and NZD/USD are down to 0.7673 and 0.7171 respectively.
Looking at the charts:
EUR/USD is looking to breach the overnight low of 1.2116 as sellers now seize near-term control on a break below the 200-hour moving average (blue line).
The 1.2100 handle will be the next key level to watch but ultimately key support sits closer to the 9 December and 18 January lows just above 1.2050.
AUD/USD is also now sneaking below its lows yesterday to its lowest level in a week, after having seen sellers establish near-term control in the drop yesterday.
That said, the pair remains largely confined within the range of 0.7660 to 0.7800 since the start of the year, so the lower bound of that range will be the key one to watch.
Meanwhile, NZD/USD buyers look to be losing momentum as price cracks below its 100-hour moving average (red line) and now nears a test of its 200-hour moving average (blue line) @ 0.7168 currently.