Title: US Dollar Starts North American Session Little Changed: Key Technical Levels to Watch
Original Author: Greg Michalowski (via ForexLive on TradingView)
As the North American trading session begins, the US dollar is showing little net change across major currency pairs. Subdued price movements dominate red-hot markets as traders await more decisive catalysts. In this technical look by Greg Michalowski, key support and resistance levels that are shaping price action offer vital context to analyze the forex market’s landscape.
Market Outlook
The US dollar is trading mostly flat in the early hours of the North American session. After a period of heightened volatility in the face of economic data releases and central bank communications, today’s opening has been relatively calm.
Factors at play:
– Recent economic data: While recent US economic data revealed moderate inflationary pressures and signs of resilience in labor markets, the figures haven’t led to large directional moves in the dollar yet.
– Market sentiment: Traders remain cautious, awaiting the next major economic catalysts, including speeches from Federal Reserve officials and upcoming inflation-related data.
– Technical factors: With no strong directional conviction, technical indicators and patterns play a more central role in defining short-term trading strategies.
Here’s how the dollar fared against major currency pairs at the start of the session, along with significant technical levels to monitor.
EUR/USD: Range-bound Attitude Dominates
– The EUR/USD has been trading within a narrow range, reflecting a period of consolidation.
– The pair remains above its 100-hour and 200-hour moving averages, suggesting a neutral-to-bullish short-term bias.
– Key support lies near the 1.0893 level, which aligns with recent price floors.
– On the upside, a break above 1.0941 could encourage buyers, potentially targeting the 1.0969 level.
– Staying within the current range indicates that market participants are waiting for stronger cues before committing to a specific direction.
GBP/USD: Limited Movement With Mixed Technicals
– Cable is showing limited directional bias as it remains stuck between the 100-hour and 200-hour moving averages.
– The 100-hour MA currently caps gains near 1.2753, while the 200-hour MA provides support close to 1.2694.
– A break above or below those levels could define the near-term trend.
– Momentum traders may be particularly watchful of a sustained movement outside this band to initiate fresh positions.
USD/JPY: Testing Highs Yet Again
– The USD/JPY remains elevated near recent session highs. Bullish momentum continues to be supported by rising US yields.
– The pair recently tested highs near 158.25 before pulling back slightly during European trading.
– The 100-hour moving average at 157.70 continues to act as dynamic support.
– If buyers can push above 158.25, the next target could be 158.75 and possibly the key psychological level of 159.00 beyond that.
– On the downside, a drop below 157.70 would open room toward 157.35 and 157.00.
USD/CHF: Bearish Momentum in Play
– The dollar is slightly weaker against the Swiss franc amid modest risk aversion and ongoing SNB vigilance on inflation.
– The pair slipped below its 200-hour moving average, currently priced close to 0.8905.
– Support is seen near 0.8883. A sustained break below could reinforce bearish momentum, pointing toward 0.8845 as the next support level.
– Resistance lies around 0.8925, where sellers recently emerged to halt upward follow-through.
USD/CAD: Range-bound Near Key Moving Averages
– The USD/CAD is exhibiting choppy behavior close to its 100-hour and 200-hour moving averages.
– The 100-hour MA stands near 1.3704, while the 200-hour MA is just below at 1.3694.
– These closely aligned averages are compressing
Explore this further here: USD/JPY trading.