Forex: EUR/USD again peters out ahead of 1.31

FXstreet.com (San Francisco) - The EURUSD is trading at its intraday highs in the Asia-Pacific on the back of a defensive dollar, threatening to retest offers around the 1.3100 mark after extending its advance for a third day from the 1.2875 floor set last Friday. Above 1.31, next bullish target is 1.3125 (Dec 5 high), then 1.3140 (Oct 17 high), 1.3170 (Sep 17 high), 1.3350 (200-week EMA) and 1.3480 (50% Fibo, 1.4940/1.2040 drop). 1.3070 offers immediate support on dips, then 1.3020 (Oct 31 high), 1.2875 (Nov 7 high) and 1.2730 (June 18 high).

"The 1.2880-3130 range seems to be holding and a pull back to 1.3000-2950 is possible while below 1.3100," says the Kshitij Consultancy Services Team. The greenback has been taking hits across the board since the U.S. Federal Reserve announced its new bond-buying program. The single currency is also finding bids on news of there to be an agreement among EU finance ministers to allow the ECB to supervise banks in the Euro-zone by the end of 2013. EURUSD seems to have peaked at 1.3090 in the Asian afternoon, now exchanging at 1.3080 with tight ranges expected into Europe.