Dollar bulls were hopeful to try and secure a breakout move for a stronger rebound last week. The technicals were certainly lining up well but we are seeing that get checked back now to start the new week, building on the dollar’s drop on Friday.
It could be some concerns involving the debt ceiling talks but whatever the case, there are questions about last week’s moves now. Let’s take a look at two key charts in that regard.
EUR/USD daily chart
The first being EUR/USD, as price now climbs back above the 100-day moving average (red line) of 1.0808 and the 1.0800 mark itself. That’s a bit of a blow to sellers but they are seen hanging on at the 100-hour moving average for now, at around 1.0827 ahead of European morning trade.
If the latter resistance point gives way, it will see sellers lose near-term control and raise further doubts about the crack lower last week. The 200-hour moving average is then seen at 1.0872 currently, so that affords some room to roam if there is a further bounce on the part of buyers later today.
USD/JPY daily chart
The next key chart is USD/JPY, with the pair now slipping back under 138.00 and holding in and around the previous broken resistance region of 137.77-91. Similar to EUR/USD, this represents a bit of a blow to dollar bulls and could invalidate the upside break that we saw last week.
For now, the near-term levels are still holding with the 100-hour moving average seen at 137.41. That will be the more immediate support level to watch for USD/JPY, in case sellers look to make a play and go in search of a move lower. Thereafter, the 200-day moving average at 137.12 will be the next key level in play.