The dollar is trading at the lows for the day now as it continues to stay under pressure to start European morning trade. After the mixed showing yesterday, the dollar is struggling somewhat across the board with spillover weakness from a stronger Chinese yuan kicking into gear at the moment.
While one may argue that this isn't that significant as the dollar has been mostly firmer in the past few weeks, there are some significant technical developments to take note of. Looking into the near-term charts, we are starting to see dollar buyers lose their stranglehold with some of the near-term biases now shifting back the other way in favour of other major currencies.
In particular, EUR/USD, GBP/USD, and NZD/USD have now seen breaks back above their respective 100 (red line) and 200-hour (blue line) moving averages today and that translates to the near-term bias being more bearish now for the dollar:
Meanwhile, AUD/USD has seen a push back just above its own 100-hour moving average (red line) and that sees the near-term bias turn more neutral instead:
In the bigger picture, the moves aren't indicative of much yet. However, typically when there are several momentum breaks across multiple dollar pairs, that is a sign that perhaps the bias is starting to shift.
For now, there's still the caveat that broader markets are finding its feet after the choppy February month-end. But as it would seem, I reckon it might take a push back above 4% in 10-year Treasury yields to really spark any further dollar momentum at this point.
