The dollar pushes higher after earlier declines
EUR/USD has given up most of its advance and falls to 1.2114 from 1.2144 earlier while we are seeing USD/JPY hold a slight bounce from its 100-day moving average near 104.40 to post a session high of 104.75 currently.
Elsewhere, the antipodeans are also tracking lower against the greenback with AUD/USD falling from 0.7750 to 0.7725 while NZD/USD is down from 0.7240 to 0.7210.
The overall picture is still pointing to the dollar keeping more vulnerable but buyers are in with a shout that perhaps the short squeeze is not quite over just yet.
The Bloomberg dollar index shows that while the dollar has retreated back below the broken trendline resistance from March to November last year, it is still testing trendline support from the January lows as seen in the chart below:
The dollar may be more vulnerable so far in trading this week but perhaps it isn’t quite rolling over the hill just yet. That said, there is still plenty of work to do for dollar bulls to convince that the greenback is set to resume a more solid bounce in the sessions ahead.