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The dollar is keeping lower to start the day and the technicals suggest that there could be more scope for weakness before we encounter a test of key levels.
EUR/USD seems poised to at least take a run at the 1.1670-00 region while GBP/USD is nearing 1.3800 and a test of its 100-day moving average. Elsewhere, AUD/USD is inching closer towards a test of its September highs at 0.7469-78.
Those will be key levels to watch from a technical perspective as the dollar maintains its sluggishness from last week. Besides that, keep an eye on the bond market still as the late retreat in yields yesterday hints at some more push and pull.
Yen pairs are continuing their good form after a light breather yesterday and I'd expect that to stay the course so long as risk sentiment also keeps steadier for now. AUD/JPY looks poised for a retest of the year's highs at 85.45-80 next.
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