The dollar rally is boiling so far today

Some profit taking on the recent Dollar rally is the most plausible argument for where FX prices are heading today as we see the Greenback lagging across the board.

The dollar had a stellar month of trading in April, so seeing some mild corrective action isn’t the most surprising thing. That said, with the end of the month in the spotlight today, it is quite difficult to interpret the movements.

EUR/USD is up 0.8% at 1.0575, but in the context of the bigger picture, that doesn’t mean much:

The pair is still under pressure on a break below the 2020 low of 1.0635 and short-term resistance in the form of the 100 hourly moving average is only visible at 1.0610. Buyers will need to break above these levels to truly justify any deeper correction.

Meanwhile, GBP/USD is up over 100 pips on the day to levels of 1.2560, but that’s also not indicative of much as discussed above here.

Elsewhere, USD/JPY briefly dipped below 130.00, but bearish buyers are once again showing their appetite by quickly buying the pair to sit around 130.30-40 at the moment: