You can always get a sense of what a lull it is when EUR/USD is trading within a 10 pips range on the day. The dollar was slightly softer in trading yesterday but it isn’t anything too significant. So far, there is no follow through of that as some key technical considerations also come into play. I’ll break them down below as we take stock of the situation ahead of European morning trade.
In the case of EUR/USD, the bounce near 1.0800 now runs into its 200-day moving average of 1.0837. Keep below that and sellers will keep poised in continuing the latest downside run. The 100-hour moving average is now seen at 1.0853 and is a key near-term consideration as well. Keep below that and the near-term bias will remain more bearish for now.
Meanwhile, USD/JPY is holding rather sideways to start the new week just above the 151.00 mark. Its own 100-hour moving average is seen at 151.35, so buyers are looking to keep above that to retain a more bullish near-term bias.
Then, we did see GBP/USD bounce off its 200-day moving average yesterday but is now running into resistance from its 100-day moving average at 1.2636. The onus is on sellers to keep price action below that today to retain the recent downside momentum.
Besides that, we have AUD/USD running into its own 200-day moving average at 0.6550 with its own 100-hour moving average at 0.6548 currently providing some resistance to buyers currently. Keep below both those levels and sellers will retain a stronger downside bias for now.
In short, the dollar is seeing its run higher from Thursday and Friday checked back a little. It is being pushed back towards some key levels and we’re reassessing said bias again to start the week.
This article was written by Justin Low at www.forexlive.com.
