USD rebounds: Technical shifts in major currency pairs

The US dollar has reversed course from earlier declines, now trading mixed against major currencies but well off the session lows. The shift comes as equity markets turned sharply lower, with the NASDAQ dropping 732 points from its session high and the S&P 500 falling 115 points. This risk-off move has altered the technical picture for several major currency pairs, prompting traders to reassess key levels.

The dollar's rebound reflects a classic risk-off rotation, where investors flee equities and seek the relative safety of the greenback. For forex traders, this means that support and resistance levels established earlier in the session may no longer hold. The euro, yen, and pound have all retreated from their intraday highs, and the technical setups now point to potential further dollar strength if risk sentiment remains fragile. Traders can check NowPrice's fx page for real-time pricing on these pairs to gauge current momentum.

Looking ahead, the focus will be on whether the dollar can sustain its gains. Key levels to watch include the 200-day moving averages for EUR/USD and USD/JPY, as well as any intervention rhetoric from Japanese officials if the yen weakens further. This week's US inflation data and Fed commentary will also be critical in determining the next directional move for the dollar and its counterparts.