The dollar is seen gaining across the board a little
The gains are rather modest for the time being, with EUR/USD seen lower to 1.1761 but holding within a 32 pips range to start the day. Meanwhile, USD/JPY is inching just above the 105.00 handle to 105.25 currently.
Despite the gains, it isn’t suggestive of any real shift in momentum in the greenback for now but NZD/USD is a pair to take note of as sellers try to seize near-term control:
The kiwi in itself isn’t really in a good spot with economic data continuing to stay more subdued and there is growing expectations for the RBNZ to retain a more dovish outlook ahead of next month’s policy meeting on 12 August.
Price action is now starting to creep below the 200-hour MA (blue line) and that will allow sellers to seize back near-term control but there is some support close by @ 0.6633.
Further below, the region around 0.6615-25 will also be one to watch and sellers will have to chase a move below that to establish more downside momentum.
As for buyers, the 31 December high @ 0.6756 remains the key challenge that they must break through in order to extend the upside range but a fall back under 0.6600 will be a setback to the recent swing move since the start of the month.