Dollar weakness rears its head and buyers are taking advantage of that

Trump is back from his summer retreat and is already starting to cause a stir in markets. His disapproval of Powell and the Fed's rate hike policy is making for a reason to sell the dollar as he remains critical of the currency's valuation relative to the euro and the yuan.

The weaker momentum in the dollar has continued into Asian trading so far with the greenback and the yen lagging on the day as equities and bond yields trade higher.

As for EUR/USD, buyers broke free of the 200-hour MA (blue line) in overnight trading and took out leveraged offers at 1.1450 to climb towards the 1.1500 level. With the former giving way, it means that the near-term bias now shifts to be more bullish.

And a break of the 1.1500 in trading today reinforces that near-term bias as it continues to show that buyers are in control of the pair at the moment.

So, what's next for the pair now?

On the calendar today there isn't much to change things in the session ahead so trading will be all about the ebb and flow and right now that is favouring buyers. However, there are key resistance levels to navigate through nearby.

First up, there is resistance at 1.1530 followed by the 1.1550 level (76.4 retracement) and then the 1.1575 level. Following all of that, the 1.1600 figure level will be keenly eyed. In the bigger picture, the downside momentum since April remains very much intact but a break above 1.1600 will start to be a cause of concern for sellers.

For the time being, the dollar side of the equation will continue to dominate trading this week as we await Powell's speech in Jackson Hole on Friday. A September rate hike is definitely baked in by now but the question will be whether or not he will reaffirm the Fed's expectations of four rate hikes following Trump's comments yesterday.

Either way, charts don't lie either and the dollar index shows that the near-term bias is also favouring sellers:

Price is now leaning against support at the 50.0 retracement level near 95.50 with further support only seen @ 95.20 and 95.00. Watch out for those levels too if we start to move lower in the day as right now it is very much a dollar story at play in trading more than euro strength.