Dollar mildly higher ahead of European trading

Technical Analysis

Dollar holds gains after month-end buying flows

The greenback is keeping in good stead to start the new week as it is maintaining the advance from Friday, which saw the dollar rally going into October month-end.

For now, things are still working out for the dollar with EUR/USD lightly lower to 1.1547 (17 pips range though) as sellers eye the October lows around 1.1525:

There isn’t much support beyond that so downside momentum could accelerate further at least towards the 50.0 retracement level @ 1.1493 next.

Meanwhile, USD/JPY is also looking perky again after keeping a defense around daily support near 113.40 last week:

USD/JPY D1 01-11

Price action has moved back above 114.00 as buyers are now in near-term control once again and staying in the hunt to retest the October highs.

Elsewhere, AUD/USD is down 0.2% to 0.7500 and testing support from its 200-hour moving average @ 0.7503. Keep below and the near-term bias turns more bearish – marking the first drop below both key hourly moving averages since early October.

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