The euro is building on its gap higher to start the new week and after having sit more mixed earlier in the day, the dollar is now struggling across the board as risk sentiment is also picking up. EUR/USD is now up over 1% to fresh highs since 18 August:
The technicals suggest a daily break above the swing region resistance of 1.0075-90 and that will allow for the euro to come up for air and get some breathing room. The next key resistance area to watch for will be the 100-day moving average (red line) at 1.0338 and the August highs around 1.0364-68.
A couple of hawkish undertones set out by ECB policymakers over the weekend might be a reason for the latest push here but on the balance of things, I'd still argue that shorts are more favoured especially when we get closer to the key technical resistance levels above.
Elsewhere, USD/JPY has also trimmed gains from 143.49 to 142.83 currently while GBP/USD is up 0.7% to 1.1665. The commodity currencies are also pushing ahead against the dollar with USD/CAD down 0.3% to just below 1.3000 and AUD/USD up 0.5% to 0.6880 on the day.
