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Forex pairs in this Article » EUR/USD (Barcelona) - Risk sentiment is fading away on Thursday, as the inactivity in the US markets has commenced to weight on the single currency. The euro is now retracing some ground after hitting fresh daily tops at 1.2900 earlier on during the European afternoon, on spiraling risk appetite buoyed by upbeat data out of the manufacturing sector in China and the core members of the euro bloc.

Sean Callow, Strategist at the Australian bank Westpac, recommends selling the cross above 1.2900 or on bounces after a deal on Greece. He adds, "Sustained EURUSD topside is likely to remain elusive amid the unresolved fiscal cliff and a probably unsatisfying EU/IMF truce on Greek funding/debt sustainability".

The cross is up 0.33% at 1.2872 as the time of writing.
Next resistance levels line up at 1.2909 (MA55d) followed by 1.2950 (high Nov.2) and then 1.2983 (high Nov.1).
On the opposite direction, a drop below 1.2827 (MA21d) would allow 1.2730 (low Nov.19) and then 1.2691 (low Nov.16).
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