The movement among major currencies has been rather dull in European morning trade but the dollar is losing some slight ground now against the euro and pound notably. EUR/USD is up 0.3% on the day to 1.0726 while GBP/USD is up 0.2% to 1.2305 currently. The moves aren’t much but it reaffirms the more bullish near-term bias in the former at least.

As seen in the chart above, buyers have been stepping in at the 200-hour moving average (blue line) to prevent any break of the upside momentum since Friday. But overall, the pair is still largely consolidating in and around the 1.0700 mark ahead of the US CPI data later today.

The next key technical upside level to watch will be the confluence of the 100 and 200-day moving averages at 1.0790-01.

Barring any surprises, the data later today should not offer much of an impetus for the dollar to melt away to that level. But if anything else, keep an eye out on the bond market and Treasury yields as any major moves there will have a spillover impact instead.

Besides the above, there’s not much else happening so far in the major currencies space as other dollar pairs remain more muted currently.

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