Forex: EUR/USD retracing weekly gains on fiscal cliff disappointment

FXstreet.com (Barcelona) - The EURUSD is tanking during the European morning and the fall is almost totalling 80 pips now, from 1.3257 high to 1.3179 (three pips away from the weekly opening of 1.3176) This plunge looks like a market statement, retracing all weekly gains as investors head into the weekend.

Disappointment over the fiscal cliff talks led to this. Even US Senate majority leader Harry Reid's acted disappointed yesterday, expecting the country to fall into the fiscal cliff. The House of Representatives will meet in a previously-unscheduled session on Sunday, while President Obama will meet today with Democratic and Republican leaders.

"Resistance at 1.3300 continues to suppress any bullish momentum as the EURUSD pair consolidates", wrote Fxstreet.com independent analyst Richard Lee, pointing to initial support at 1.3165.