The US Dollar Index (DXY) ended the session slightly down after rejecting at key resistance. The bullish hammer recovery paused at last week's highs at 80.40, failing to confirm a double bottom base. Bearish hourly diverging studies contributed to the bearish rejection, which now seeks a higher low to maintain the bullish structure. A sustained move below the 20 & 100-day moving averages will shift the immediate focus to the 38.2% retracement at 79.20.
The British Pound was the outperformer following an upbeat retail sales report. The GBP/USD recovered back above long-term trendline support and managed to retrace a quarter of this week's sharp decline. The pair, however, remains bearish while below the 38.% retracement at 1.5676.
The EUR/USD retested the 1.3180 region, but managed to rebound on the back of bullish diverging hourly studies. Clearing the 30-day moving average is now required to redirect bulls back towards 1.3470, a key Fibonacci retracement level.
