The movements are rather subdued but they are in continuation of the minor decline in the dollar seen yesterday. This comes after the robust gains noted in the greenback at the end of the previous week. Consequently, it appears that the dollar is encountering resistance as the new week takes off. EUR/USD is showing an increase of 0.2% to 1.0855 but is still hovering just below its 100-day moving average for the time being:
There are significant option expiries at 1.0860-70 which are anticipated to restrict any further upward movement. Nonetheless, buyers are now challenging a breach above the 100-hour moving average of 1.0853. A breakthrough above this level would shift the immediate bias towards a more neutral stance. However, the 100-day moving average at 1.0873 remains a crucial resistance level to monitor in the broader perspective.
On another note, USD/JPY has slipped marginally by 0.1% to 151.28 but is currently confined within a relatively narrow range of under 25 pips today. Meanwhile, GBP/USD has climbed by 0.2% to 1.2660 as it surpasses its own 100-day moving average of 1.2636 at present. However, there is an imminent obstacle from the 100-hour moving average at 1.2667 up next.
Moreover, USD/CAD is retreating from the 1.3600 level to 1.3568 at the moment while AUD/USD is up 0.2% to 0.6550 for the day. The latter is testing its own 200-day moving average at 0.6550 along with its 100 and 200-hour moving averages at 0.6548-55. Surpassing these levels would empower buyers to take more control in an attempt to regain an upward bias.
The slight weakening of the dollar on the day coincides with an incremental rise in equities during the trading session. S&P 500 futures are currently at their peak, marking a gain of 0.4% on the day.
Source : www.forexlive.com