EUR/USD taps 1.1650 as risk continues to recover

• The Euro markets are capitalizing on the USD's walk-back.
• Confidence is recovering for the last half of the week as EU-UK Brexit negotiations take a much-needed turn for the better.

The EUR/USD is trading higher once again in early Thursday action, testing the 1.1650 region as the Euro catches a bullish ride thanks to recovering risk appetite through the broader markets.

The US Dollar index is taking another step lower heading into the later part of the week, propping the EUR/USD higher after the major pair made a recovery from the week's lows near 1.1540. European markets saw a resurgence of risk appetite as it looks like European Union leaders and the United Kingdom are willing to make concessions in Brexit negotiations, lifting odds of a soft Brexit scenario next year.

EUR/USD levels to watch

Bidders are coming back out of the woodwork to continue driving the EUR/USD back up, carrying the pair up over the 1.1600 handle and begin grinding out towards recent swing highs into the 1.1700 region. Support from the 1.1550 region is firming up at the week's lows, a higher lower on the medium-term timeframe, while 1.1700 still represents a significant barrier for the pair.