The greenback has been putting up more of a fight since the latter stages of last week but now we are getting a clearer indication from the technicals that things are lining up for the dollar to recover more strongly. The turn isn't just confined to USD/JPY as noted here as we are seeing other dollar pairs also look for a more bullish turn for the greenback.
EUR/USD is down 0.8% to 1.0240 to fresh lows on the day as it continues the rejection from the 200-day moving average (blue line). The near-term chart also now starts to favour sellers i.e. dollar bulls as price breaks lower:
Price is dipping below its 200-hour moving average (blue line) and that indicates that sellers are now back in near-term control.
This comes as broader market sentiment continues to look rather sluggish with S&P 500 futures down 0.5% on the day now and 10-year Treasury yields being up 1 bps to 3.841% currently.
