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The US dollar weakened against the EURUSD, USDJPY, and GBPUSD pairs at the start of the North American session. Technical analysis shows EURUSD rising above key moving averages at 1.1632, with buyers gaining momentum after sellers failed to break a long-term support level. USDJPY initially dropped due to Bank of Japan Governor Ueda's comments on potential rate hikes but rebounded toward 160.00 as buyers regained control. GBPUSD also recovered above its 100- and 200-hour moving averages after repeated failed attempts to break below the 200-day moving average. The dollar's decline reflects mixed market sentiment and technical resistance levels.
This shift impacts forex traders by highlighting critical support and resistance zones. EURUSD's move above 1.1632 could target the 200-day moving average, while USDJPY's proximity to 160.00 raises intervention risks. GBPUSD's resilience suggests buyers are in control, with potential for further gains. Traders should monitor central bank statements and technical levels for directional clues.
For global markets, the dollar's weakness may pressure emerging currencies and commodities priced in USD. MENA investors should watch EURUSD and GBPUSD movements, as they influence Gulf trade and investment flows. Key levels to track include EURUSD's 1.1655-1.1667 zone and GBPUSD's 1.34757-1.34803 target. Central bank policy signals and geopolitical developments will remain pivotal.
