The dollar is struggling once again in trading today
Things are getting rather dicey for the dollar this week as we now see EUR/USD hit 1.2100 upon rebounding from its 100-day moving average (red line) at the end of last week, with USD/JPY also tracking further below 105.00.
As much as the greenback has been resilient to start the new year, it looks like the short dollar squeeze may be turning the corner as we also see Treasury yields retreat today.
The bond market was a key focus yesterday as 10-year yields threatened 1.20% and 30-year yields the 2.00% mark. However, both ultimately failed and we are seeing the former fall to 1.146% now and the latter to 1.922% on the day.
Going back to EUR/USD, this is seeing price also break away from key trendline resistance to start the year at around 1.2063 and a push above 1.2100 will just solidify that.
I'm not a big fan of the dollar index in general but a break back below the broken trendline resistance - now support - is perhaps not a good sign:
That will certainly bring back questions of the structural dollar weakness debate especially if the dollar index moves closer back towards 90.00.
