The dollar and the yen are being beaten down today
Risk sentiment in markets continue to improve and that is continuing to weigh on the dollar and the yen in particular. Treasury yields are moving back towards the 3% level again and that is helping to pin down the latter rather heavily.
But the improved risk sentiment is helping to lift the euro, and EUR/USD has moved back above the two key hourly moving averages and is now heading back towards a retest of the swing region resistance around 1.1650.
As mentioned earlier, the pair has been playing ping pong between the range of 1.1530 and 1.1650 since last week. So, this again will be a key test for buyers to break above in order to extend the range and build momentum towards the upside.
The good news for them is that previously sellers could still somewhat lean on the 200-hour MA (blue line) when price tested the 1.1650 level. Now, that key resistance hurdle has already been broken but 1.1650 will still act as an important level psychologically.
With little catalysts in markets today, the recovery in risk sentiment looks to be the main theme in trading today. Barring no negative headlines on trade, that should keep the euro underpinned into the US session.