Major currencies mostly little changed so far

Technical Analysis

Dollar keeps steadier after its advance in trading yesterday

Besides USD/JPY, all other dollar pairs are keeping within 0.1% changes as we get things going on the session, reflecting a more tepid mood despite the push lower in stocks.

In the case of USD/JPY, the pair continues to be largely dragged between 104.00 to 104.50 over the past few days with large option expiries a factor to consider in keeping price action in the pair more limited before they roll off later today.

Elsewhere, the dollar is looking less interested alongside the bond market, where 10-year Treasury yields are sitting little changed at around 0.82% now after being down by nearly 2 bps earlier to 0.803%.

EUR/USD is sitting near unchanged levels within a 30 pips range, though sellers are still looking poised in keeping a break below 1.1700 for now. The 100-day MA (red line) @ 1.1654 will be a key technical level to watch out for ahead of the close today.

Below that, there is some added support from the late September lows @ 1.1612-27.

As for buyers, they need to keep above the 100-day MA for now. But in terms of establishing any upside momentum, getting back above 1.1700 is the first challenge to convince of any potential to wrestle back near-term control.

As for the outlook today, things may be calmer now but it seems like Wall Street will have the final say ahead of the weekend. If anything else, it could turn to be a day that is decided by risk flows but watch out for month-end fixing action as well just in case.
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