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Major currencies are keeping little changed to start the new week, with the yen keeping mildly weaker but nothing that stands out all too much.
That said, with Treasury yields tracking higher, just be wary that we could see some extended moves in yen pairs later on in the session. USD/JPY is still flirting with key resistance around 105.57-65 while AUD/JPY is on the cusp of a breakout above 81.00.
Dollar gains appeared to have stalled now with EUR/USD holding at key support on Friday around 1.1967-76 and that allowed for a rebound back above 1.2000.
Near-term price action has shifted to in between its key hourly moving averages @ 1.2018 and 1.2065 so that is the key range to determine whether buyers or sellers will eventually seize back control of the pair in driving the next directional move.
In turn, that will also play a key role in gauging dollar sentiment this week.
Elsewhere, equities continue to push higher on stimulus hopes with the S&P 500 eyeing a breach of 3,900 as futures keep gains ahead of European morning trade.
In the commodities space, oil is continuing to push higher with Brent on the cusp of $60 for the first time since January last year.
Part of the story in oil is the reflation trade but underlying fundamentals have also somewhat improved - much helped by OPEC+ sticking to output curbs.
That said, the question is how much higher can oil prices really go before we start to see a semblance of a peak again. While other risk assets have eclipsed their pre-pandemic highs, oil hasn't quite done that as WTI lingers below $60 still.
All things being equal in terms of oil and market fundamentals, the 100-month moving average @ $62.20 and 200-month moving average @ $69.51 are perhaps the key levels to watch with the former helping to rein in the 2018 highs.
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