Dollar holds steady after recent rebound

The greenback held its ground somewhat on Friday last week as risk sentiment retreated. But as the latter recovered a little yesterday, the dollar also managed to squeeze in some gains to start the week. USD/JPY is back up above 143.00 as 10-year Treasury yields continue to stay afloat just above the 3.70% mark. That is keeping things more interesting as we look to sort things out before getting to the FOMC meeting next week.

So far today, major currencies are not up to much. The ranges for the day are narrow with USD/JPY once again the only one slightly more stretched. That said, as mentioned above, the fate of the pair is still very much tied to the direction of the bond market as well for now.

Besides that, the recent dollar rebound is bringing in some key short-term levels in play.

EUR/USD is hovering near its low from last week of 1.1026 while USD/CAD is not too far away from its 200-day moving average of 1.3588. Meanwhile, AUD/USD is already contesting its 100-day moving average of 0.6646 today. Those are some of the more interesting levels to watch out for to start the week.

USD/JPY is also one to keep an eye out for with a potential double-bottom around 142.00 in play now.

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