Forex: EUR/USD still below 1.31; outlook remains bullish – V.Bednarik

FXstreet.com (San Francisco) - The EURUSD closed the US session around the 1.3070 level for a second day Thursday, finishing unchanged after trading a 1.3040-1.3100 range intraday. In Asia, the pair is gently offered and regional bourses are likely to trade with a negative bias on pessimism that U.S. lawmakers may not reach a deal in time to avert the fiscal crisis before the looming year-end deadline.

Technically speaking, "For the short term, the EURUSD hourly chart shows a pretty neutral stance, giving no clear clues on direction for the upcoming hours," comments Valeria Bednarik, Chief Analyst at FXstreet.com. "However, the upside continues to be favored as long as above 1.3040 immediate support, with chances of an extension towards 1.3000 if the support gives up." Ms. Bednarik identifies immediate resistance at 1.3100, with further levels of potential selling interest at 1.3135 and 1.3170. If the cross breaks below the 1.30 figure, further support is noted at 1.2970.

On the fundamental front, traders are expecting to get a wave of EU meeting headlines at some point during the current Asian session.