The euro has recovered off its lows after a shaky start earlier
The dollar is keeping more mixed on the day as it trades lower against the euro, franc and yen but is mostly little changed against the rest of the major currencies bloc.
The pound is the weakest performer but cable is off its lows from 1.3161 earlier to near 1.3200 now with AUD/USD also bouncing off some minor support from 0.7250 to 0.7280.
Looking at EUR/USD, buyers continue to keep a defense around the 200-hour MA (blue line) and the 50.0 retracement level @ 1.1762 as we see price move back higher from a low of 1.1759 earlier to session highs of around 1.1815.
Essentially, price action is now playing the range between the support levels mentioned and the 100-hour MA (red line) @ 1.1728 as the near-term bias keeps more neutral now.
The euro is also staying somewhat supported from EUR/GBP price action as the pair staved off a push against its September lows of 0.8866-74 and is trading at 0.8950 currently.
Meanwhile, GBP/USD is marked a little lower as sellers managed to wrestle back some near-term control on a push below 1.3200 and are continuing to keep price action below the 100-hour MA (red line) @ 1.3199 for now.
Keep below that and the near-term bias stays more neutral, with that opening a range between 1.3100 and 1.3200 as we await Brexit negotiations to conclude this week.
AUD/USD is also seeing a somewhat similar price action develop as we see buyers struggle to keep above its 100-hour MA (red line) and 0.7300 this week.
The near-term bias has now switched to being more neutral but sellers are still finding it tough to breach support around 0.7250-53 for the time being.
The more neutral near-term bias that is playing out across multiple dollar pairs suggest that the market is hitting a bit of a crossroads again, as we see equities struggle to stay afloat after posting some modest gains yesterday.
European indices are down between 0.4% to 0.8% while US futures are seeing more mixed tones with tech stocks starting to come back into favour.
Nasdaq futures are up 0.6% but Dow futures are down by 0.5%, while S&P 500 futures have trimmed earlier declines to around 0.1% currently.
In a way, the market is reversing the brief and sudden euphoria seen on Monday as it starts to revert back to the original "Plan A" - running to the shelter of tech stocks.
That may hint that optimism is somewhat fading and it draws in the question of is this the market hinting at a bit of a breather i.e. consolidation phase, or perhaps there might be some room for correction once the flows even out in the sessions ahead.
