Title: USD Shows Limited Movement as US Session Commences: A Technical Analysis Overview
Source: Originally reported by Greg Michalowski, InvestingLive
Link: [The USD is Little Changed with Limited Up/Down Price Action](https://investinglive.com/technical-analysis/the-usd-is-little-changed-with-limited-up-down-price-action-to-kickstart-the-us-session-20260107/)
Author: Greg Michalowski
The US dollar opened the US session with minimal directional movement, reflecting a general lack of strong momentum or volatility on Monday. Market participants began the trading day cautiously, with few notable economic catalysts influencing immediate market direction. Below is a comprehensive breakdown of the key themes and technical levels that shaped early US session trading as the week began.
Overview of Market Sentiment
As trading commenced in the US on Monday, the broader market exhibited signs of restraint. The US dollar did not show significant gains or losses, suggesting a broadly balanced sentiment among traders. A number of key market factors contributed to this muted behavior:
– A lack of fresh high-impact economic data or geopolitical developments
– Traders awaiting direction from upcoming US inflation figures and other key economic indicators later in the week
– Caution ahead of central bank commentary and further developments in global bond markets
Currency Pair Movements and Technical Setups
As markets opened, the major USD-based currency pairs traded within relatively narrow ranges. Below is a recap of the technical positioning and movements observed across key FX pairs:
EUR/USD
– The EUR/USD pair hovered near mid-range levels.
– Key resistance identified at the 200-hour moving average, which served as a near-term ceiling for the pair.
– Support evident at the 100-hour moving average providing a zone of consolidation.
– Absence of strong breakouts above or below these moving averages signaled indecision.
GBP/USD
– The British pound showed a modest upside bias but lacked strong follow-through.
– The pair tested support around the 100-hour moving average, acting as a technical floor.
– Resistance came in near the 200-hour moving average.
– Like EUR/USD, GBP/USD remained within fairly tame boundaries, reflecting restrained market sentiment.
USD/JPY
– The Japanese yen lost some ground against the dollar in earlier sessions but found stabilization as the US market opened.
– Technical support appeared close to recent swing lows from last week, acting as a near-term base.
– Near-term resistance cones into play at Friday’s highs, with failure to break higher hinting at loss of upside momentum.
USD/CHF
– The Swiss franc showed minimal net movement.
– A weak breakout attempt above near-term resistance was observed but lacked momentum for sustained follow-through.
– Similarly, no significant breaches of recent support levels occurred, reaffirming market indecision.
AUD/USD
– The Australian dollar attempted modest upside movement.
– Intraday resistances contained price action just below last week’s highs.
– Price found temporary support at Friday’s lows, suggesting this level as a near-term line of defense.
NZD/USD
– The New Zealand dollar followed a similar pattern as AUD/USD.
– The pair failed to breach meaningful resistance levels from last week.
– Modest turnaround suggested some support, although upside was capped by weak follow-through.
US Dollar Index (DXY)
– The Dollar Index remained little changed during early US trading.
– Price action stayed within a tight zone, with no major directional breakouts.
– The index struggled to break above 200-hour moving average resistance while forming support near its 100-hour moving average.
Key Technical Indicators Monitored
Traders continued to reference several key technical indicators to gauge short-term momentum and potential breakout zones:
Moving Averages
– 100-hour and 200-hour moving averages emerged as core pivot points across most major currency pairs.
– These levels, particularly in EUR/USD and GBP/USD, effectively served as zones of compression and consolidation.
– Lack of definitive price breakouts beyond these levels emphasized the absence of strong momentum.
Explore this further here: USD/JPY trading.