It's a quiet one in European trading as the dollar rout from last week is still failing to get started again this week. There was some back and forth action yesterday but essentially, it leaves the dollar in not much of a different spot considering the technical changes. Here's a quick summary:
- EUR/USD continues to hold just above 1.1200 with large option expiries also in focus today but is no different from the technical predicament seen two days ago here
- GBP/USD keeps just above its 200-week moving average of 1.2885 for now but downside momentum holds after the UK CPI data yesterday
- USD/JPY remains little changed as buyers continue to hang in there in trying to test the 140.00 mark (keep in mind that there are large option expiries at 140.00-10 today)
- USD/CHF continues to keep just under 0.8600 as the downside bias from last week is being retained, as noted here earlier in the week
- AUD/USD while getting a strong boost today is still not really in a position to justify a further upside leg, with key resistance still seen closer to 0.6900 at this point
- NZD/USD while higher today is also still not really going anywhere with key resistance remaining intact closer to 0.6380-90 for now
In other words, we are seeing the dollar consolidate its position on the week and things may stay that way until we get to the Fed next week. So, despite the rout last week and its vulnerabilities, the greenback is still not falling much lower just yet.
