Dollar keeps steadier as the week looks to pick up

The changes so far on the day are light but we are seeing some interesting levels come into play for dollar pairs. EUR/USD is starting to tick towards testing levels below 1.0900 with USD/JPY nearing the 150.00 mark. That comes even as risk trades are rallying further, helped by easing tensions in the Middle East.

The drop in EUR/USD yesterday affirms a break under its 100-day moving average (red line), putting sellers in a better spot to start the week. Price action is now also chipping away at the 50.0 Fib retracement level of the swing higher since April, seen at 1.0907.

The next key support level in focus is now the 200-day moving average (blue line). That is seen at 1.0873 currently. Break below that, and sellers will have more momentum to drive price towards the early August lows near 1.0800 potentially.

Looking to USD/JPY, the pair came close to clipping the 150.00 mark yesterday with the high touching 149.98. Price action is holding thereabouts today, with buyers looking to stay poised. But they will need some extra oomph to get over the figure level and chase a more significant push higher from here.

Just be wary that there is the crossover of the 100-day moving average (red line) back under the 200-day moving average (blue line) for the pair. That might be suggestive of a switch up in short-term momentum and also act as a key resistance closer to 151.00 currently.

But so far today, the changes are relatively light across the board. Here’s a quick look at things currently.

After the slower start yesterday, things should be picking up in the new week as noted here.

This article was written by Justin Low at www.forexlive.com.