TECHNICAL ANALYSIS

The dollar extends its gains to start the session


The dollar and the yen continue to benefit from the risk climate

AUD / USD H1 22-05
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The greenback is still advancing in all areas amid continued risk liquidation as we begin morning trading in Europe. AUD / USD fell to a session low of 0.6516 as the dollar also hit session highs against the euro, pound and loonie.

In particular, AUD / USD continues to maintain a break below its 100 hour MA (red line) with the next key support being at the 200 hour MA (blue line) @ 0.6500.

European stocks are under pressure alongside US futures on tensions between Hong Kong and China, with the Hang Seng index down more than 5%, adding to concerns so far today.

For AUD / USD, there is also additional support over the 100-day moving average at 0.6495. But break below the 0.6495-00 region and the sellers will regain control.

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