The dollar is just a touch lower on the day, as traders are settling into European morning trade. EUR/USD is up 0.2% to 1.0925 while USD/JPY is down 0.1% to 145.43 currently. That said, both pairs are stuck in a 27 pips range and a 37 pips range respectively so far.

It’s a quiet one to start proceedings, though the kiwi and pound are the two leading the way. The former is up after the RBNZ decision earlier here while the latter is just getting a little nudge higher after the UK inflation data here. Looking at the charts..

Sellers are still very much in control for EUR/USD with the pair sitting below its 100-day moving average (red line) at 1.0930. That remains the key level to watch on the daily chart and keeping below that will continue to allow sellers to maintain the downside momentum for now.

And in GBP/USD, the pair is up 0.3% today to 1.2736 but it isn’t anything to suggest a turnaround in momentum just yet. The pair is still seeing upside more limited closer to 1.2800 while downside saw a test of the 100-day moving average (red line) yesterday. Buyers were able to hold on the first attempt but we’ll see if sellers have more appetite to chase a stronger move later this week.

Elsewhere, the dollar is still able to benefit from USD/JPY keeping above the 145.00 mark. Hold above that and buyers will stay invigorated but there is some caution to be heeded as we now sit in intervention territory for Japanese authorities.

Then, we have AUD/USD which broke to its lowest levels since November last year but is now turning things around on the day. The pair is now up slightly by 0.15% to 0.6464 and is hoping to seek a closing rebound above the May low of 0.6458. If so, the fall this week might be indicative of a false break but it is still early days to call for that at the moment.

If sellers can maintain price action below the May low of 0.6458, then there is scope for the downside to extend further with little support from here until the 0.6200 level.

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