The U.S. dollar is mixed to start the week, with the EURUSD and GBPUSD moving higher while the USDJPY is also edging up. In today's video, I take a look at the technical picture driving the major pairs.Spoiler alert: The EURUSD is trapped between its 100-hour and 200-hour moving averages, leaving the pair in a more neutral trading stance as buyers and sellers battle for short-term control.The USDJPY remains above both the rising 100-hour moving average at 161.71 and the key 40-year high at 161.95. The trading range is getting tighter and tighter, setting up for a potential breakout. Importantly, sellers had their opportunity on Friday when the pair briefly broke below the 100-hour moving average, but they could not sustain downside momentum.Meanwhile, GBPUSD buyers are making a push higher, taking the pair back above its 200-hour moving average at 1.3225 to begin the U.S. session. Getting and staying above that level would tilt the bias more firmly to the upside and have traders targeting 1.3263, followed by the 50% retracement level and a prior swing low near 1.3300.U.S. stocks are sharply higher. Over the weekend, South Korea announced a major initiative to boost investment in semiconductors, artificial intelligence, and technology infrastructure. The program is aimed at expanding semiconductor capacity, AI data centers, and advanced packaging, supporting companies such as Samsung and SK Hynix while reinforcing South Korea's critical role in the global AI memory supply chain.The positive tech backdrop is helping fuel gains in equities, with the Nasdaq up 375 points, the S&P 500 higher by 70 points, and the Dow Jones Industrial Average up 325 points.In the U.S. debt market, the yield curve is flattening as shorter-term yields move higher while longer-term yields are mixed. The 2-year yield is up 1.0 basis point at 4.10%, the 10-year yield is higher by 2.4 basis points, while the 30-year yield is down 0.6 basis points.The weekend also brought renewed tensions in the Middle East after Iran was blamed for an attack on a commercial cargo vessel in the Strait of Hormuz. The United States responded with limited retaliatory strikes on Iranian military targets near the Strait, including drone and maritime-related facilities. The exchange briefly reignited fears that the fragile ceasefire could collapse and disrupt shipping through the Strait of Hormuz—the world's most important energy chokepoint. Shipping traffic reportedly declined sharply as Iran reasserted control over vessel movements in the area.Despite the military exchange, both sides appeared to step back from a broader confrontation by the end of the weekend. U.S. officials said Washington and Tehran had agreed to halt further strikes and continue negotiations, with freedom of navigation through the Strait remaining a key issue. That helped limit market fallout, but the situation remains highly fragile. The key takeaway is that diplomacy is still alive, but the cargo-ship attack and U.S. retaliation served as a reminder of how quickly the region can shift from negotiations back to military action.In other markets, crude oil is up about $0.60 at $69.80 per barrel. Gold is down $38, or 0.92%, at $4,051, while silver is lower by $0.87, or 1.5%, at $58.24. Bitcoin has rebounded back above the $60,000 level after falling to a low near $58,800 earlier in the session and is currently trading around $60,600 This article was written by Greg Michalowski at investinglive.com.