The U.S. Dollar see-sawed most of the day, before closing lower. The lack of economic reports caused a choppy two-sided trade. In addition, many traders stayed on the sidelines or evened up position ahead of this week’s many central bank reports. In most cases the Dollar continued its strength in a follow-through rally from Friday, but failed to hold on to its gains by the close. Technically, the Dollar Futures Index took out Friday’s high but failed to attract the buying strength it needed to drive it higher. The chart pattern suggests a break to 75.26 to 75.03 may be needed to relieve the overbought condition.
The USD JPY traded inside of the 92.32 to 84.83 range. Technically overbought conditions pressured the market all day. The chart pattern and trading action suggests a pull-back to 87.80 to 87.10 is likely over the near-term.
The main trend is down on the daily chart for the EUR USD. The lack of follow-through to the downside after the main bottom at 1.4801 was broken suggests that this currency pair may be oversold and ripe for a retracement. The first upside target is 1.4950.