USDJPY edged higher from new lowest level in almost three months, following three-day sharp fall on coordinated intervention by Japan's authorities and US central bank, to support weakening yen.
EUR/USD begins the week around 1.1540. Following a volatile week, market attention has shifted from the Federal Reserve meeting to US economic data.
US Dollar Index, EUR/USD and GBP/USD await NFP, JOLTS, ADP and ISM Services PMI as traders assess the Fed's next move after last week's rate hold.
Summary:EUR/USD climbed to its highest level in more than six weeks after breaking above 1.1500. Softer expectations for further Federal Reserve tightening continued to pressure the US dollar.
The US dollar has come under renewed pressure following last week's FOMC meeting and coordinated support for the Japanese yen by Japan's Ministry of Finance and the US Treasury. The move has fuelled gains in EUR/USD and AUD/USD, while raising fresh questions over whether the Dollar Index has formed a significant top.
Euro: Rebound eyes key resistance band against US Dollar – UOB
EUR/USD builds on gains as bulls eye higher levels
EUR/USD Price Forecast: Gains traction above 1.1500, while remaining constrained below 100-day SMA
Looking at the 4-hour chart, the pair gained pace for a move toward 1.1550. There was a close above 1.1500, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
EUR/USD is testing long-running downtrend resistance in early Asian trade on Monday, reacting to an artificial, and potentially temporary, slide in the dollar late last week. Rather than the economic calendar or technicals, it's likely the Japanese yen that determines whether resistance holds or snaps, with the threat of further joint intervention by Japanese and US authorities likely to dominate proceedings.
The true US Dollar Index hits an all-time COT extreme as the Euro confirms the signal [Video]