The pair is still feeling the weight of the technical breakdown below the 135.00 level since last week. A drop today would mark four consecutive daily declines for the pair, its worst run since the early stages of this year (before the unrelenting rally since March). That perhaps is a signal that the bullish sentiment is starting to wane.

The next key support level to watch will be the 132.00 mark on the daily chart with the 16 June low at 131.49 also a focus point. That will be a key region before potentially revisiting the 130.00 level as well as the 100-day moving average (red line) at 130.10 currently.

The bond market still holds the main cards though 10-year Treasury yields are up nearly 2 bps to 2.67% on the day but still threatening a technical break lower in yields.