It was mostly the euro and pound which were pressured lower against the dollar earlier. But we are seeing both currencies turn back to near flat levels on the day now with EUR/USD back up to 1.0800 and GBP/USD up to just above the 1.2600 mark. Here’s a snapshot of things and you can see how the ranges remain fairly tight and dollar pairs are basically flat currently:

After having been wrong-footed yesterday, it seems like European traders are happy to wait on North America traders to make their move especially as stocks have the risk and tendency to reverse later in the day.

Going back to the dollar, EUR/USD has key resistance at around 1.0800 with the 200-day moving average at 1.0802 one to watch today as highlighted here. Besides that, GBP/USD is keeping below its 100-day moving average and that key level is seen at 1.2638. Stay below that and sellers will be in control.

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