Dollar on troubled shores so far this week

Major currencies might not be too active so far today but they are slowly leaning in the direction of a softer dollar. The greenback rebounded after the US retail sales data last week. However, that quickly faltered on Friday and the selling has carried over to the new week. Here are some key happenings in the dollar pairs at the moment:

• EUR/USD secures breakout above 1.1000, eyes the December highs of 1.1123-39
• GBP/USD tests waters above 1.3000 today, with sights on the July high of 1.3044
• USD/CAD continues downside run after rejection of 1.3900, now looks to 200-DMA at 1.3598
• AUD/USD extends upside rebound with July highs near 0.6800 eyed next
• NZD/USD pulls above its 200-DMA, may look towards its Feb, March, and June highs of 0.6218-22

In other words, there is scope for the dollar to move lower across multiple charts at the moment.

And all else being equal, that looks to be where we are headed. The key risk event this week will be on Thursday from Fed chair Powell’s speech. But there will also be PMI data to watch alongside the US weekly jobless claims on the economic calendar.

This article was written by Justin Low at www.forexlive.com.