The USD index itself managed to hold above the 95.00 figure earlier in the day and turned slightly positive
The euro came under pressure late last week amid the resurgent demand for the safe-haven dollar as investors opted to take profit in the global financial markets after the ascent witnessed earlier in the week. As a result, the common currency briefly dipped below the 1.1400 figure but managed to finish the week just above this level. On Monday, the EURUSD pair continues to oscillate around 1.1400, struggling for direction in thin holiday trading. US markets are closed today for Martin Luther King Jr. Day.
The USD index itself managed to hold above the 95.00 figure earlier in the day and turned slightly positive on the day in recent trading, holding around 95.20 during the European hours. However, it looks like the greenback would lack the upside momentum to overcome this immediate barrier in the short term as positive risk sentiment dominates global financial markets. Above the mentioned area, the dollar would target the 95.70 zone where the 55-DMA arrives.
Should the euro dip below 1.1400, the pair may target the 1.1380 region. Below this zone, the upside pressure should subside and sellers might return to the market. In a wider picture, the outlook for the European currency remains bearish as long as the pair stays below the 100-DMA at 1.1500. In the longer term, the key upside target is represented by the 200-DMA, today around 1.1730.