We are seeing some light extensions of the ranges today but it is all pointing to some slight softness in the dollar to start the session. EUR/USD us up to 1.14858 while USD/JPY is down to 114.47 currently. I'll dive more into the individual charts in a bit but USD/CAD seems to be one that is making a run to the downside:
The pair is testing waters below its 200-day moving average (blue line) of 1.2498 and that could see the downside momentum accelerate in the sessions ahead. Of note, there is also a semblance of a head-and-shoulders pattern which is breaking so that adds to the technical momentum for sellers at the moment.
The 1.2400 level is the next plausible target but the pattern above suggests that we could see sellers look for a retest of the October lows closer to 1.2300.
