Title: US Dollar Opens North American Session With Modest Movement: Key Technical Levels to Watch
Original source: Adam Button, ForexLive via TradingView News
URL: https://www.tradingview.com/news/forexlive:9255f308b094b:0-the-usd-is-little-changed-to-start-the-na-session-what-technical-levels-are-in-play/
As the North American trading session kicks off, the US dollar is showing only marginal changes across most major currency pairs. The quiet start reflects a pause in the markets ahead of what is shaping up to be a potentially pivotal week. With key central bank decisions, economic data releases, and geopolitical developments on the horizon, traders are on alert for the next big move. For now, however, key technical levels are serving as important reference points for gauging likely market direction.
Adam Button of ForexLive offers an insightful breakdown of the current technical landscape as the US dollar steadies into the start of the session. Below is a summary of price action across the major FX pairs, along with the most important support and resistance levels currently in play.
Overview of the Dollar Position
– The US Dollar Index (DXY) has shown only minor fluctuations in early North American trading.
– Markets are awaiting fresh catalysts to determine the next directional move. This includes economic data like US retail sales and the upcoming Federal Open Market Committee (FOMC) decision.
– Volatility remains relatively subdued, with no major surprises during the Asian or European sessions.
– Risk sentiment appears broadly stable, with equity markets flat to slightly positive and Treasury yields showing limited movement.
EUR/USD: Key Technical Levels
– Current Price: Hovering near the 1.0860 level at the start of the session.
– Support Levels:
– 1.0834: Recent swing low and immediate support on the downside.
– 1.0800: Psychological level and near the 100-hour moving average.
– 1.0785: 200-hour moving average, a more significant level to monitor.
– Resistance Levels:
– 1.0895: A previous high reached earlier in the week and aligned with minor intraday Fibonacci levels.
– 1.0916: 61.8% retracement of the recent decline.
– 1.0950: The next upside target, marking a potential breakout zone.
Overall, the EUR/USD remains in a consolidative pattern. A break above the 1.0916 resistance could open up further upside potential, while a move below 1.0800 support would elevate selling pressure.
USD/JPY: Consistent With Yen Weakness
– Current Price: Trading near 157.60.
– Support Levels:
– 157.00: Minor short-term support.
– 156.50: A stronger support area formed on prior consolidations.
– 156.00: Round number psychological support.
– Resistance Levels:
– 157.70: Near current market price and a local resistance point.
– 158.00: Critical psychological level; a breach would imply sustained yen weakness.
– 158.25–158.30: Key resistance zone identified in previous price structure.
BoJ intervention remains a potential wild card, especially if yen weakness intensifies. The 158 level is closely watched by both markets and Japanese officials.
GBP/USD: Defined Trading Range Emerges
– Current Price: Hovering near 1.2700.
– Support Levels:
– 1.2675: Immediate downside support, holding through earlier sessions.
– 1.2660: Support from last week’s low.
– 1.2620: 200-hour moving average and possible broader support.
– Resistance Levels:
– 1.2718: Intraday resistance and recent triple top pattern.
– 1.2750: A more aggressive upward breakout level.
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Explore this further here: USD/JPY trading.