EUR/USD nears last week’s lows as dollar keeps firmer

EUR/USD falls to a session low of 1.0820

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The dollar and yen are keeping firmer as stocks and the risk mood continue to stay softer during European morning trade.

EUR/USD is easing to session lows on the day now, falling to 1.0820 and closes in on a test of the near-term support region at 1.0812-17.

That was the lows posted last week with the 76.4 retracement level @ 1.0821 also providing an area to lean on for buyers.

A break below those levels will open up the path towards a rest of 1.0800 with key support being at the 6 April low @ 1.0769. That will be the pivotal level that sellers will be aiming for as a break below that will pave the way for a move back towards the March lows.

Risk aversion is a key theme to start the week and that is helping to underpin the dollar and yen, but so far the moves are rather orderly.

This means that there aren’t any overbearing financial strains popping up yet but just be mindful of the oil meltdown and how that could spillover to other risks in the market.

From a technical perspective, sellers are in near-term control for EUR/USD but once again we’ll have to see if there is enough of a push to break the near-term support above; in turn helping to open up the path for further downside under 1.0800.