After running against a set of key technical levels earlier in the week, the dollar is now falling significantly across the board as we see a correction in the recent momentum. Let's recap:
- EUR/USD flirted with a drop below daily support at 0.9900 this week but failed to firmly hold a close below that
- USD/JPY came close to testing 145.00 but failed to challenge the key level and has since been rejected amid jawboning by Japanese officials (knock out options also touted at 145.00)
- GBP/USD neared the March 2020 lows close to 1.1400 only to see that level hold once again (technical bottom in place?)
- USD/CAD moved up to test 1.3200 as it did in July but has failed to firmly close above that on the daily chart
- AUD/USD ran into weekly trendline support and that level held once again just below the 0.6800 level
In turn, we are now seeing the near-term bias for most pairs switch back to favour the major currencies against the dollar. EUR/USD is taking a look at the recent swing highs around 1.0075-90 again now:
Meanwhile, USD/JPY is pushing back towards a test of its 100-hour moving average at 142.69, with a break below that set to see the near-term bias turn more neutral instead:
Then, GBP/USD is moving back up towards 1.1600 as buyers seize back near-term control on a push above its 100 and 200-hour moving averages upon a rebound from the March 2020 lows near 1.1400:
Here is a closer look at the AUD/USD trendline support on the weekly chart with the pair also now trading back above both its 100 and 200-hour moving averages i.e. near-term bias turns more bullish again.
