Dollar tries to build rally, eyes major euro bulwark

By Reuters7 days ago

Reuters. FILE PHOTO: An employee of the Korea Exchange Bank counts one hundred U.S. dollar notes during a photo opportunity at the bank's headquarters in Seoul April 28, 2010. REUTERS/Jo Yong-Hak

By Wayne Cole

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SYDNEY (Reuters) - The dollar tried to extend a rally on Wednesday as chatter about the possibility of higher U.S. interest rates and a sell-off in tech stocks soured risk sentiment to the benefit of the safe-haven currency.

The rebound put pressure on the euro which dropped to $1.2012 and threatened to breach important chart support in the $1.1995/1.2000 area.

If sustained, this could suggest today's session may be important for near-term direction, particularly if EURUSD managed to close below the key $1.20 pivot, said Ned Rumpeltin, European head of FX strategy at TD Securities.

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