COZforex: Euro rise 0.10% against the US dollar closed at 1.2951, as risk appetite increased amongst investors, after US House Speaker, John Boehner indicated that he was optimistic that a deal can be reached with President Barack Obama to avert the fiscal cliff. In the Asian session at GMT0400, the pair is trading at 1.2950, with the EUR trading flat from yesterday’s close.

The US Commerce Department reported that new home sales fall by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000. Furthermore, the Federal Reserve in its Beige Book survey of regional economies indicated that the US economy has expanded at a “measured pace” in recent weeks. It revealed that manufacturing activity in most of the US districts has either slowed down or has shown outright contraction. However, the survey revealed that the consumer spending and home sales have improved at a moderate pace in most districts.

Elsewhere, Euro-zone’s broad monetary aggregate M3 grew 3.9% in October, from a 2.6% rose in September, while Spanish retail sales declined 9.7% in October, from a revised 11.0% decline registered in the previous month.

In Germany, the harmonized index of consumer prices rise 2.0% annually in November, following a 2.1% rose recorded in October. Meantime, the consumer price index rise 1.9% in November, after rising 2.0% in October.

Coz forex senior derivatives trader Daniel • Moloney said, EUR/USD is predicted to find its first resistance at 1.2981, and a rose through could take it to the next resistance line of 1.3012. Also, the pair is predicted to find support at 1.2900, and a fell through could take it to the next support line of 1.2849.

Daniel • Moloney also stated that EUR/USD is trading above its 20 Hr and 50 Hr moving averages. (COZ forex UK)

COZ forex EUR/USD Chart:

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