The dollar looked like it was set for a breakout on multiple fronts at the end of last week but suddenly, we’re seeing everything turn back on a series of a couple of false breaks.
EUR/USD dropped below 1.1200 only to come back up to 1.1270 now, moving towards the 50.0 retracement level of its recent downswing @ 1.1302. Meanwhile, GBP/USD is contesting a push back above its 100-day moving average @ 1.3511 so that will be a key spot to watch in the sessions ahead; further resistance also seen at the 50.0 retracement level @ 1.3553.
Elsewhere, AUD/USD saw a brief slump below 0.7000 only to rise back from the dead now to be above 0.7100. Buyers are back in near-term control and may be looking for a push back towards 0.7200 next.
All of this comes as risk trades are making a stand and this S&P 500 chart remains a pivotal one to pay attention to:
Support from the July to October lows continue to hold and we are now seeing price move towards a test of its 100-day moving average (red line) next.
That will be a key driver of trading sentiment as the week winds down and as we head towards the US non-farm payrolls on Friday.
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