TECHNICAL ANALYSIS

Dollar remains looser so far in European morning trade


The dollar trades at daily low to start the session

EUR / USD is approaching 1.2200 as AUD / USD climbs slightly above its 200 hour moving average at 0.7563 as the greenback is weaker to start European trading.

There is still a great degree of back-and-forth during the week, not helped by more lenient market conditions in light of Christmas trading this week.

Despite Brexit and other issues, cable is also proving to be quite resilient, with price action holding above 1.3400 and trading between key near-term levels:

GBP / USD S1 23-12
The pound suffered a double whammy on Monday but kept its decline somewhat modest, with EUR / GBP also retreating from 0.9200 to 0.9070-80 levels currently.

Returning to cable, the hold above 1.3300 yesterday now sees buyers pushing the pair back between the major hourly moving averages @ 1.3415-44.

The 100 hour moving average (red line) helped 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 to break the Brexit deadlock before Christmas, but we could very well see things stretch to the last minute before December 31.

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