- US dollar upside attempt has been capped right below 0.9100.
- The dollar loses momentum as risk aversion eases.
- Traders become increasingly cautious ahead of the US elections.
The US dollar attempted to break above the top of the last five days’ trading range, at 0.9090, on Tuesday to find sellers at 0.9095 before retreating to 0.9060 area.
US dollar loses steam as risk aversion eases
The greenback has lost momentum on Tuesday, with the US Dollar Index slightly negative on the day following a strong performance on Monday. With risk aversion easing somewhat, the greenback’s bullish attempt has lacked follow-through above 0.9090 and the pair has returned to previous levels although it remains slightly positive on the day.
Investors seem to have taken profits on Tuesday, rolling back USD longs with the uncertainty about the approaching US elections prompting a cautious approach to the market.
US Equity markets are mixed after a slightly negative opening, following sharp declines on Monday. The Nasdaq Composite Index is trading 0.6% above opening levels, with the SP 500 and The Dow Jones giving away 0.3% and 0.8% respectively.
In the macroeconomic front, US durable goods orders and housing prices figures have posted better than expected readings, which have contributed to buoy market sentiment during the North American trading session.
Technical levels to watch
Credit: FX Street