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The USD opened lower during the North American session following two days of strong gains, with EUR/USD and GBP/USD hitting 2026 lows while USD/JPY reached a high since January 22. Technical analysis shows EUR/USD rebounded to the 38.2% retracement level but stalled near its 200-day moving average at 1.1665. GBP/USD similarly bounced off 2026 lows but faces resistance at key moving averages. USD/JPY tested the 100-hour moving average at 156.83, a critical level for maintaining its bullish trend. This correction highlights the USD's vulnerability after recent strength, with traders closely monitoring technical levels to gauge momentum shifts. The 200-day MA for EUR/USD and the 100-hour MA for USD/JPY are pivotal for determining whether buyers can regain control. For GBP/USD, breaking above the 100-day and 100-hour moving averages would signal renewed bullish momentum. MENA investors should watch these levels for potential entry/exit points. A sustained break above 1.1665 for EUR/USD or 1.3411 for GBP/USD could attract long positions, while a drop below 1.1576 or 1.3304 may trigger further declines. USD/JPY's stability above 156.83 remains critical for maintaining its upward trajectory.
