Dollar selling picks up to start the session

The dollar is down across the board to start European morning trade, as the selling from yesterday carries over. Despite the Monday jump, the dollar has failed to sustain the momentum with price action now starting to turn back against the currency. EUR/USD as seen above is now back above 1.1200 as the near-term bias switches back to being more neutral and closes in on filling the gap lower from the start of the week.

USD/JPY is also down 0.8% to 146.30 currently and contesting a break blower below its own 100-hour moving average of 146.58.

Elsewhere, we’re seeing GBP/USD extend higher to 1.3350 and AUD/USD also moving closer towards a test of the 0.6500 level. The latter though has large option expiries at the figure level that could limit gains until we get to US trading.

Here’s a couple of reasons why the dollar is struggling despite equities and the risk mood holding their ground from the recent trade news.

This article was written by Justin Low at www.forexlive.com.