Major currencies were little changed earlier but as we get into European trading, the dollar is gaining some ground to start the session. EUR/USD is dipping back just below 1.0900 after brushing against the highs last week around 1.0920-30:
The near-term picture shows that buyers are still in control as price action holds above the 100 (red line) and 200-hour (blue line) moving averages. As such, those will be notable support lines to watch alongside bids at the 1.0800 mark.
As for topside resistance, the 1.0920-30 region provides some short-term resistance before the big one seen at 1.1000.
Elsewhere, USD/JPY is also seen up 0.3% to 133.10 at the moment as bond yields start to creep a little higher. 10-year Treasury yields are up 2 bps to 3.57% while 2-year Treasury yields are up 4 bps to 4.14% on the day currently.
Then, we have GBP/USD which is now down slightly to 1.2365 after having hit a high of 1.2425 in Asia trading - coming close to test its December and January highs of 1.2446 earlier.
The antipodeans are also lagging slightly with AUD/USD down 0.4% to 0.6680 and NZD/USD down 0.1% to 0.6255 as the choppy price action in both pairs continue on the week.
Looking ahead, month-end and quarter-end flows will be something to watch out for and until we clear that, only might traders have firmer convictions on how to proceed in terms of the technical and fundamental outlook.
