The USD is lower to start New York after a quiet steady open in Asia overnight; traders note trading was subdued in early trade but appetite for the Yen crosses finally began to push the USD lower. Technical trade was the rule as no real unexpected news was released . Falling back from Friday's highs the Greenback failed at several key technical support levels across all major pairs to start the week on the defensive. Equities were higher across the board with all major bourses in the black by several percent helping to support their respective currencies.

The DJIA is called higher this morning suggesting that the USD will remain under pressure into the London fix. GBP scored an overnight high at 1.5051 at tech resistance; falling back more than a full handle to trade 1.4910 above previous resistance at 1.4850. Traders report some light stops but lower volumes. EURO high print at 1.2917 before profit-taking by short-term longs pushed the rate back to the 1.2850 area but the rate has since stabilized around 1.2770/80 area suggesting the EURO has solid support at the 1.2750 area of previous resistance. USD/JPY rallied as equities rose overnight but still held resistance around the 94.00 area; high prints in the rate at 93.92. Traders report solid buyers from the lows at 92.56 suggesting that the rate may be attempting a technical correction but most agree more losses are coming likely into the low 90.00 area. USD/CHF backed off the Friday highs as well as light profit-taking stalled the rate at a high print at 1.2211; traders note volumes lighter and focus remains on equities.

Technical levels suggest a close above the 1.2180 area likely to attempt a new high but I don't think that is likely as the volumes have been dropping off into the highs twice now making for a weak top in my view. Aggressive traders could short the rate on any strength back to the 1.2180 area if not short from last week in that area. Low prints in USD/CHF at 1.2080 making for two-way trade. USD/CAD also under pressure as expected; no real news from the government over the weekend but higher crude may be lending a hand some traders say. High prints in USD/CAD 1.2755 with lows at 1.2442; currently under pressure in New York at 1.2510/20 area. In my view, the USD is having a simple technical day; no real action beyond current levels is in play at this point. Today's news is out and it was minor in nature and the only thing on the calendar today is speakers. Traders will likely take their cue from equities today so if stocks rally watch to see where USD/JPY stalls; anything under the 94.00 handle the rate may be bottoming for a short-squeeze. Look for the USD to continue two-way overnight.

Overnight Asia/Europe
• Equities better on follow-through from Friday
• Crude firmer USD drops into New York
• Volumes continue on the light side

Today's Economic Reports
All times EASTERN (-5 GMT)
• 1:45pm USD FOMC Member Fisher Speaks

Looking Ahead to Tuesday
All times EASTERN (-5 GMT)
• 10:00am USD Pending Home Sales m/m
• 10:00am USD IBD/TIPP Economic Optimism

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com