Although movements are relatively light, the dollar continues to weaken slightly from yesterday. And this follows a strong rise in the US dollar last weekend. So it looks like the dollar will be a case of checking so far as we head into the new week. EUR/USD is up 0.2% to 1.0855, but for now it remains slightly below its 100-day moving average.
EUR/USD daily chart
There are some major option expirations at 1.0860-70 that will likely limit further upside. However, buyers are now vying for a break above the 100-hour moving average of 1.0853. Beyond that, the short-term bias switches to something more neutral. However, the 100-day moving average of 1.0873 is still an important upper bound to keep in mind.
Elsewhere, USD/JPY is down 0.1% to 151.28, but is confined to a relatively narrow range of less than 25 pips today. Meanwhile, GBP/USD is currently up 0.2% at 1.2660, above its 100-day moving average of 1.2636. However, next there is near-term resistance at the 100-hour moving average at 1.2667.
In addition, USD/CAD has now retreated from the 1.3600 level to 1.3568, while AUD/USD is up 0.2% on the day to 0.6550. The latter tests the company’s 200-day moving average at 0.6550 and its 100-hour and 200-hour moving averages at 0.6548-55. Above these levels, buyers will have more control as they attempt to return to the upward bias.
The dollar’s slight decline on the day came as stock prices rose gradually during trading. S&P 500 futures are currently at an all-time high, up 0.4% on the day.
