Overall, Monday trade proved to be rather static, with the major pairs preparing to close in the proximity of the break-even line. The vast majority of trading had been concentrated during the Asian session, and during the U.S. trading hours, at 10:00am EDT, after the better than expected ISM and Pending Home Sales reads. At that time, the dollar index plunged, but the move was later reversed almost entirely, in-line with the equity markets.



Dollar Index Technical View:
Daily chart trend: Short. Main price points: 75.00. Looking for: Ending diagonal

Prices on the dollar index daily chart are threatening the upper line of an ending diagonal, where a break-out will confirm that the bottom is in place. In this case a retracement into the red wave IV area will be expected, while the current lows around the 75.00 zone must hold.
The RSI indicator is showing a bullish divergence, which also indicates a change in trend direction.

The euro (Eur/Usd 1.4765) surged up to the 1.4850 area during the U.S. session, to the same place where it topped during the last few days of trade. As expected, the euro has failed to break any higher, forming a bearish pin-bar formation on the hour four chart. Right now, the pair is trading caught between the 20 and the 50-day moving averages.

The pound (Gbp/Usd 1.6395) is currently forming a doji-star candle on the daily chart, as the pair failed to move anywhere decisively. This comes, as the pound is trading slightly above the 100-day moving average, but below the 1.6600 level, which had been the main swing point over the last five months of trading. 

The aussie (Aud/Usd 0.9035) tested he 20-day moving average, helped by the U.S. session surge. Soon afterwards, the aussie started retracing and is now preparing to close the day 80 pips above the opening price. Interestingly, gold had a very strong day in the commodity market, but this had little effect on the aussie ahead of the RBA rate decision at 22:00 EDT.

The cad (Usd/Cad 1.0780) spent almost the entire day moving up and down in the 1.0800 area, without a clear direction. Over the last two weeks of trading, the cad has been trading in a near-term upward channel. However, in order to continue its big-picture downtrend, the cad would have to break free from this channel, in the 1.0750 area. 

The swissy (Usd/Chf 1.0220) had a range of almost 100 pips during the last four days of trading, but still the swissy has failed to move anywhere decisively. Moreover, in this area, the 20-day moving average can be found as well, which might act as a drag on the swissy if it tries to move lower. 

The yen (Usd/Jpy 90.30) managed to break above the 90.00 area, which had been an important swing point lately. Over the last few days of trading, the yen had been in a short-term downtrend, affected by the selling seen in the equity market. As soon as the S&P futures find a base, the yen is expected to resume its uptrend.