The declining value of the US dollar over the past few weeks has many traders anticipating a potential direction change, particularly as the greenback approaches significant support lines. The EUR/USD rose as high as 1.3840 on Monday, before returning to trade near 1.3815 in today's early morning hours. The GBP/USD also hit as high as 1.6286, up from its recent dip to 1.6030.

The sudden rise in risk appetite was one explanation being offered for this most recent USD boost. The tensions spreading across the Middle East, however, have some speculating a return of risk aversion as tensions in Libya become more pronounced. This has led many investors to begin shifting away from riskier assets and seeking safety in commodities, which has also driven the USD lower.

This week may provide the much-needed decision point for the USD. With Non-Farm Payrolls due this Friday, the uncertainty surrounding the American recovery will undoubtedly be made clearer. Today's report of the ISM Manufacturing PMI at 15:00 GMT may provide a glimpse into other growth prospects before this week's more important data releases get published.