In American business also, the dollar has come down again today, maintaining some softness compared to yesterday. The greenback was higher on Monday, but that was before North American traders returned from the long weekend. US-China trade tensions remain the key driver of business sentiment this week, with Trump heating up the mood again here yesterday.
All this is keeping the market on edge and is not helping the broader market mood in general. Just need to take things a step further and we will see how market players react to how they fare from April to June and there are also risks to the dollar after finding some stability over the past few months.
However, so far this week, there has only been back and forth price action. But now as we approach the halfway mark of the week, we are seeing the dollar losing momentum and the near-term price bias starting to favor sellers.
EUR/USD hourly chart
EUR/USD may be up just 0.1% on the day to 1.1622, but higher overnight resulted in a breach of the 100-hour moving average (red line). This shows that the near-term bias is now more neutral, with the price action midway between this (at 1.1589) and the 200-hour moving average (blue line) – seen at 1.1636.
USD/JPY Hourly Chart
But perhaps more interesting is USD/JPY, the pair opened with slightly higher margins on Monday before filling out tomorrow. Since then, the price has been trending lower and now we even see a break of the 200-hour moving average (blue line) of 151.29. Stay below that and the near-term bias will remain more bearish.
In the bigger picture, there is still more gap to be closed from last Monday.
