Forex: EUR/USD: path of least resistance likely North – V.Bednarik

FXstreet.com (San Francisco) - The EURUSD peaked at a one-month high on Thursday, reaching as high as 1.3011 on early optimism that lawmakers on Capitol Hill would reach an agreement to keep the world's largest economy from falling into another recession next year. But pessimistic comments from House Republican, John Boehner, soured the mood, and caused the pairing to close the North American session off its highs at 1.2975, around 20 pips above its starting price.

"Entering Asian session, the hourly chart shows a slightly bullish tone as indicators head north above their midlines and price holds above a bullish 20 SMA," observes Valeria Bednarik, Chief Analyst at FXstreet.com. "Selling interest around 1.3010 has proven strong so far, yet renewed attempts to break higher will likely succeed with 1.3080 then at sight."

EURUSD remains sitting tight in the 1.2975 region ahead of markets opening in Tokyo and Sydney. Ms. Bednarik identifies support levels at 1.2970 (immediate), 1.2945 and 1.2910. Regional bourses are likely to trade with a positive bias today, following upbeat Japanese data and after shares on Wall Street finished higher.