The dollar trades to the lows for the day to start the session
EUR/USD is nearing 1.2200 while AUD/USD is inching back above its 200-hour moving average @ 0.7563 as the greenback is seen weaker to start European trading.
There is still a large degree of push and pull taking place during the week, not helped by thinner market conditions in light of Christmas trading this week.
Despite Brexit woes and what not, cable is also proving to be rather resilient with price action now holding back above 1.3400 and trading in between key near-term levels:
The pound suffered a double whammy on Monday but has kept its decline somewhat modest, with EUR/GBP also backing away from 0.9200 to 0.9070-80 levels currently.
Back to cable, the hold above 1.3300 yesterday is now seeing buyers push the pair back up to in between the key hourly moving averages @ 1.3415-44.
The 100-hour moving average (red line) helped to limit the rebound earlier in the week and will be a key near-term level to watch for now, alongside resistance closer to 1.3500.
UK and EU lawmakers will be keen to try and break the Brexit impasse before Christmas but we may very well see things stretch on to the last minute before 31 December.
Then again, it's not like that is going to stop them from negotiating into next year.
