Dollar struggles continue in European trading today

Well, the move up in EUR/USD was certainly quicker than I thought it would be. The pair is now already moving up to test waters above the 1.0700 mark currently. We’re now testing key daily resistance from the 50.0 Fib retracement level at 1.0695 and soon to be the 200-day moving average (blue line) at 1.0725:

This comes as we see the dollar offered in European morning trade, running lower across the board.

USD/JPY is down 0.5% to 149.10 while GBP/USD is up 0.4% to 1.2850 currently. AUD/USD has also recovered from a softer position in Asia, where it fell to 0.6235 to be up 0.2% at 0.6285 now.

It’s been a tough week for the dollar in general to say the least. A more dour risk mood failed to really spark meaningful haven bids in the greenback while an improvement in the risk mood today is causing it to slump on the other side of the scale.

Coming up later, there’s crucial US data that could either compound the dollar’s woes or at least help alleviate some of the pressure. The ADP employment change and ISM services PMI will be closely watched in the day ahead.

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