The dollar is not much changed in trading today but it is holding its ground after the advance yesterday.
EUR/USD is seen in a 20 pips range (1.1265-85) only while USD/JPY is treading a measly 28 pips range (113.47-75). That says quite a bit on how the market is currently feeling to start the session.
Commodity currencies are pretty much flat on the day against the greenback now, so that leaves just a light advance seen in the euro, yen and pound. But even then, they are not suggestive of much. Let's dive into the technicals.
EUR/USD continues to see sellers stay in near-term control. That comes amid a defense of a minor trendline resistance, the key hourly moving averages, and the 1.1300 level. The confluence of those levels is limiting upside for now.
Meanwhile, there is some minor support around 1.1235-40 before we get to the critical 1.1200 handle. That pretty much outlines the range for the pair ahead of the Fed tomorrow.
As for GBP/USD, the pair is looking to contest the 1.3200 level once again today. After a brief reprieve, sellers are looking to push the agenda again below the figure level. However, there is added support from the 38.2 retracement level @ 1.3165.
That will be a key spot to watch in case we get a more hawkish Fed and a less hawkish BOE this week.
Elsewhere, USD/JPY is still not doing much since the drop below 114.00 at the end of last month. Price action continues to be trapped in between key resistance at 114.00 and key support at 112.60-72.
Traders will be looking to the Fed tomorrow to perhaps provide a catalyst for a break on either side.
