The dollar is living right on the edge to start the new week, with several potential breakdowns against other major currencies in trading yesterday.
EUR/USD ran up to its highest since June before the daily close fell back below the 15 December high of 1.0736. That said, price action is holding above 1.0700 for now, providing some encouragement for buyers. Meanwhile, AUD/USD is still keeping a break above key technical resistance levels but is seeing gains pared today back under 0.6900 amid some cautious risk tones.
USD/CAD is also a touch higher today but remains under pressure after the break below its 100-day moving average on Friday last week. The pair is up 0.1% to 1.3400 now but sellers are still in near-term control.
It's going to be hard to keep any real convictions for long this week with the US CPI data coming up. I reckon only after that will we really see the new year get going as markets will start to find a theme (or stick to the Q4 2022 theme) to work with.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.