The USD is modestly lower at the start of the North American session, with the move representing a corrective pullback after two days of strong dollar gains. Those gains pushed EURUSD and GBPUSD to new lows for 2026, while USDJPY climbed to its highest level since January 22.
For EURUSD, the pair has rebounded modestly and moved above the 38.2% retracement of the decline from this week’s high at 1.16435, but the recovery stalled ahead of the 200-day moving average at 1.1665. The high reached 1.1654, landing between those two key technical levels. Going forward, the 200-day MA remains the critical barometer. A move above would give buyers greater confidence that the recent downside momentum is fading. On the downside, traders will continue to focus on the 2026 low near 1.1576 as the next key target if sellers regain control.
For USDJPY, the pair extended higher yesterday within a well-defined rising channel, reaching a new high for the move dating back to January 22. Today’s corrective decline brought the price down to test the rising 100-hour moving average at 156.83, a level that also aligns with prior highs from last week and Monday. Holding above that area keeps the short-term bullish bias intact. A move below would be needed to give sellers more confidence and signal that the upside momentum is starting to fade.
For GBPUSD, the pair — like EURUSD — bounced off 2026 lows after yesterday’s sharp decline. Early trading today saw the price dip again, with the low stalling near Monday’s low at 1.33106. The session low reached 1.3304 before buyers stepped in. The subsequent rebound pushed the pair above a short-term downside trendline and toward key resistance defined by the 100-day moving average at 1.3395 and the falling 100-hour moving average at 1.3411. The high reached 1.3403, between those two levels. For buyers to regain stronger control, the price will need to break above both moving averages and hold the gains. On the downside, traders will watch 1.3337, followed by the 1.3310–1.3304 area, as important support levels.
