Euro / US Dollar (EUR/USD) : Precipitated agreement in Congress
After an attempted amendment quickly removed, the House of Representatives, Republican majority, preferred in emergency voted the agreement, itself reached yesterday by the Senate and the White House, validating a tax increase for the richest, to avoid the Fiscal cliff.
However this precipitated agreement does not mean the end of the negotiations. Traders take advantage of this news and a return of the euro in contact of USD 1.33 to take profits. The issue of reducing government spending and postponed decisions on the debt ceiling should be the source of intense negotiations.
Technically, the Euro is now approaching our USD 1.3098 short term support, which could allow it to gain momentum to push ahead again. In the opposite case, a return below 1.2995 would invalidate our strategy.
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