The dollar is dragged lower in European morning trade
Cable is back above the 1.2700 level to post a high of 1.2715 as AUD / USD has also hit a session high of 0.7053 currently. Meanwhile, the EUR / USD has reduced its losses from 1.1420-30 levels earlier to 1.1460 for now.
Of note, the cable is now struggling to break above its 200 day MA (blue line) at 1.2704 and a breakout above that will see buyers establishing more control in the pair. Further resistance is then observed closer to 1.2800 thereafter.
Elsewhere, the USD / CAD also makes a noticeable move throughout the day:
Price action is coming back below 1.3500 and more noticeably below its 200 day MA (blue line) @ 1.3512. This level has limited the decline in recent weeks and a decline could allow sellers to push to the June low at 1.3316.
Right now the focus is on risk sentiment, particularly with US stocks posting a strong start to the week and the S&P 500 breaking through its own key resistance region at around 3233 to 3325 over the course of the week. night:
US futures continue to hold around 0.5% higher and that, along with the more positive mood in European stocks, is putting pressure on the dollar to enter the session.