Cable back to nearly flat levels as dollar gains wane a little
The risk mood in the market is still softer with European indices holding around 2% losses and US futures near 1% declines as we start to look towards North American trading.
But the dollar is seeing some gains pared back - notably against the euro and pound - with cable rising from a low of 1.2466 to 1.2510 levels currently.
The greenback is still keeping firmer against the likes of the aussie, kiwi and loonie though.
Back to cable, price action is now starting to move back above its 200-hour MA (blue line) @ 1.2505 once again. Hold a break above that and buyers will wrestle back near-term control in the pair with further resistance seen closer to 1.2543-53.
The better sentiment in the pound can also be seen in EUR/GBP, as price action is slipping back under the 100-hour moving average after failing to hold a firm break at fresh three-month highs in trading yesterday on a push towards 0.9079.
EUR/GBP is now seeing the near-term bias turn more neutral in a push lower to 0.9025.
As for cable, the dollar side of the equation remains one to watch in the session ahead. If stocks stay pressured, that could in turn keep cable closer to 1.2500 with a slight tilt towards the downside favouring the greenback.
The key level to watch in that regard will be the 100-day moving average at 1.2496.
Keep below that and sellers will be more in control but there is still work to do in order to establish a more bearish near-term bias with the 100-hour MA (red line) still seen far away at 1.2443 with some added support seen closer to 1.2465-70 first.
