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Forex pairs in this Article » EUR/USD (Barcelona) - A slow European morning trading, ranging at 1.2915/40, gave room to a rapid plunge to the 1.2900 psychological level with no particular report as trigger. The pair is resuming the consolidation post-Eurogroup decision that happened on Monday as the market falls for the second day in a row, following an extensive upside since November 13 (1.2662 low).

Commerzbank analysts believe that the EURUSD softening post-Eurogroup deal makes sense "as no one had seriously doubted that Athens would be saved, which meant that the upside potential was limited", wrote analyst Lutz Karpowitz, expecting a struggling market ahead of Friday, when the German Parliament will be voting on the new deal for Greece, likely to be approved.

The US "fiscal cliff" is becoming the main worry for the market. "The leader of the majority in the Senate Harry Reid sounded rather sceptical last night and stated that "little progress" had been made in the negotiations. Should the negotiations fail the US economy would get close to a recession in 2013", added Karpowitz.

"My outlook thoughremains bullish, for a break through 1.3020 static resistance, en route to 1.3170 high", wrote analyst Stoyan Mihaylov, pointing to intraday support at 1.2874, as a violation of that level will signal, that the whole rise from 1.2736 is complete.
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