Dollar a touch on the softer side ahead of European morning trade

The dollar and yen are the laggards on the day

The latter in particular is trailing behind against the major currencies bloc but the dollar is also in a bit of a softer spot as we get things underway on the week.

In particular, the greenback is giving back some of its Friday gains against commodity currencies. AUD/USD is up 0.3% to 0.7485 and testing its 100-hour moving average at 0.7485 as buyers try to keep the upside momentum going:

Keep below that and the near-term bias stays more neutral but hold a break above and the bias turns more bullish instead. However, buyers will have to do more to convince of a stronger push higher and that may have to come with a break of 0.7500 at least.

Elsewhere, the dollar is continuing a drop against the euro with EUR/USD climbing up to 1.1660 and nearing a test of its 38.2 retracement level at 1.1671 again:

EUR/USD D1 25-10

I’d argue that the resistance region between that and 1.1700 may help to limit gains in the pair for now as the dollar continues to sort itself out, so any upside momentum is still leaning towards the tentative side in my view.

Technical Analysis

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