Forex: EUR/USD jumps back above 1.3200 on NY

FXstreet.com (Barcelona) - Half of the European morning 90-pip plunge from 1.3256 to 1.3166 was retraced with a little help of US money flows ahead of the New York opening that pulled the EURUSD back above the 1.3200 handle. The retracement was stopped at 1.3221, for now.

Investors will be looking for headlines coming from the US fiscal cliff talks being held at the White House, between President Obama, Reid, McConnell, Boehner and Pelosi. The US Chicago PMI is due at 14:45 GMT.

"EURUSD has broken the strong resistance at 1.3172 (17/09/2012 high) and has, thus far, successfully tested the hourly support at 1.3144 (17/12/2012 low)", wrote MIG Bank analyst Bijoy Kar, monitoring the current consolidation between 1.3144 and the resistance at 1.3308 (19/12/2012 high).