Markets looking rather tepid so far in trading today

Author: Justin Low | Category: News

European trading quiets down as dollar weakness cools off today

The AUD returned back to the top of the charts, but not by much. The moves today have been relatively small. The Japanese yen and British pound stayed almost unchanged in trading today - and the ranges have been narrow.

Meanwhile, NZD is not keeping up with the AUD as NZD/USD encounters some resistance levels at 0.7107 as I mentioned earlier here.

The Chinese yuan surrendered gains from a stronger PBOC fixing and is lower on the day against the USD. And the EUR is at the bottom of the pile as EUR/USD slips further from yesterday's highs of 1.2081 - now trading at 1.2038.

For EUR/USD, this is the chart I'd be most keen to look at:

It's a rising wedge formed from last year's upward trendline and capped by the 2017's high point. This could potentially be one of the first breakout moves of the year.

The support from the upward trendline proved to be a good spot to lean on for buyers in December. If the upside move here stalls and falls further, that could be the line in the sand for the pair early this year as well.