After risk appetite soured in trading yesterday, we are seeing things run back the other way in European trading today. The dollar is on the softer side as we see equities tilt higher, with European stocks putting up solid gains and US futures also higher. S&P 500 futures are now up 30 points, or 0.7%, on the day.
That said, this doesn't change much for the dollar. I outlined the technical outlook for some dollar pairs here yesterday and they aren't very much different at the moment as the pushing and pulling continues to play out.
As mentioned then, EUR/USD is still sitting in no man's land for the most part with price up 0.4% today to 1.0755 currently. The bigger picture outlook still sees price action caught in between 1.0500 to 1.1000 for the most part, so we're right in the middle of that.
Meanwhile, USD/JPY is down 0.3% to just below 131.00 as it crosses back on the weekly pivot to sit lower this week after the opening gap higher on Monday:
The downtrend is somewhat persisting with the sequence of lower highs, lower lows arguably still intact.
Then, we have GBP/USD which is showing a bit more of a bounce off 1.2000 and near its 200-day moving average this week:
However, the December highs at 1.2443-46 will continue to put a lid on any upside momentum in the bigger picture.
Then, we have AUD/USD which is up 0.7% today to 0.6970 levels but buyers are still struggling a little to try and break above the 0.7000 mark again for now. The bounce comes after daily support at the 19 January low of 0.6870 held:
It looks like we might not get any firm answers until the US CPI data next week at least.