Forex: EUR/USD at session lows expectant of US 'fiscal cliff'

FXstreet.com (Barcelona) - While news from the US 'fiscal cliff' cross the wires and credit agency Standard & Poor's downgrades Cyprus foreign long-term issuer credit rating to CCC+ from B, EURUSD just had a dive to recent session lows at 1.3222 from previous session highs at 1.3252. The pair is still higher by +0.2% from previous Asia-Pacific open yesterday, and +0.49% for the week.

"Flat in the hourly chart, the US congress will vote on fiscal cliff later today around 00:30 GMT, and that's the main risk factor for current session," says Valeria Bednarik, Chief Analyst at Fxstreet.com, noting that "a negative outcome may see risk aversion, and send EURJPY strongly down, dragging EURUSD also lower," Valeria adds.

The analyst finds support levels for EURUSD at: 1.3225, 1.3185 and 1.3140, while resistance levels at: 1.3290, 1.3320 and 1.3385.