The dollar momentum is starting to shift back to the other side

The greenback is trading to session lows on the day now as it is down across the board amid a slightly more positive tilt in the equities space once again.

European and US futures are keeping higher and that is piling some pressure on the dollar and yen once again, with the recent dollar reprieve now being called into question as the near-term charts start to point to the other direction.

EUR/USD is looking to break above its 200-hour moving average (blue line) @ 1.2147 as buyers now seek to establish a more bullish near-term bias on the week.

That hasn't been the case since 7 January as sellers have largely stemmed off any modest bounce at around the 100-hour moving average (red line) previously, but that level gave way rather easily in trading yesterday.

AUD/USD H1 20-01
Adding to that, AUD/USD is also pushing above the confluence of its own key hourly moving averages @ 0.7719-28 as buyers try to establish near-term control.

The resistance region held off the advance yesterday but is now starting to give way as the dollar is keeping weaker across the board.

Further resistance is seen closer to the 61.8 retracement level @ 0.7750 (minor resistance) before the swing region at 0.7780-90 and 0.7800 level comes into play.

Elsewhere, the dollar is also showing signs of softening with GBP/USD chasing another push towards testing key resistance at 1.3700 while USD/CAD has eased below its own key hourly moving averages on a drop just below 1.2700 currently.

The dollar managed to hold steadier previously on the back of higher yields and as the reflation narrative played out. However, with the latter arguably taking a breather for now, the focus of the market may yet turn back to the Fed put.

That doesn't bode too well for the dollar, although we are unlikely to see such protracted and extensive moves as the ones seen in November and December this time around.

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