The Dollar-Index fails to close above the 104 treshold and the chart looks like the rally may be over here for now. In any case, the Dollar had a good run and my short-term skew is bearish. Tomorrow's US CPI numbers will tell us whether the rise in 10yr Treasury-Yield above the 3.00% level was justified (see also Market update #8). Weaker than expected CPIs could result in a Dollar dip. But of course there is also a risk on the other side that could push the Dollar to new highs first.
EURUSD -- 1.0557
The Euro is still holding above the 1.0500 treshold and you get the impression the market is just waiting for an explosive relief rally above the 1.0636 resistance. But when I get this feeling other participants may get it too. In this respect, I do not know whether the Euro can start a recovery rally without dipping even more. Watch your longs carefully.
USDJPY -- 130.16
The currency pair is supported above 130.00 / 129.40 / 128.75 but below the mid Bollinger band (128.72) the recent rally could find an abrupt end and a decent dip to around 125 ish is on the agenda. Above the April high at 131.25 is not much resistance left. You have to switch to a monthly chart to find the next real resistance at 135.
AUDUSD -- 0.6976
In the Aussie we may have already witnessed the final dip this early morning. Anyway below the 0.6993 resistance I cannot recommend longs. A solid daily close above 0.70 is the minimum confirmation we need. The next support below todays low comes in around 0.6775.
Good luck,
Sebbo