FXstreet.com (San Francisco) - EUR/USD hit a four-week high as it traded a broad range between 1.2915 and 1.3010 overnight before closing down 1.2940 vs. 1.2970 late Monday; the market had been in a rising trend since last week.

The move lower materialized as the spotlight shifts to the looming U.S. fiscal crisis a day after a new debt target for Greece was announced, but there are lots of concerns about the plan for Greece. Lawmakers on Capitol Hill continue to move toward compromise on a deal to address tax increases and spending cuts, but markets remain uncertain and risk averse, causing stocks on Wall Street to close lower yet again.

In the hours ahead: “Practically with no data for current Asian session, the EUR/USD will likely remain short term heavy,” says Valeria Bednarik, Chief Analyst at FXstreet.com. “So far, 1.2940/50 area has capped the upside, while daily low stands at 1.2915. Below this last, sellers will likely find some opposition around 1.2880, strong support over past October, yet if this last gives up, 1.2800 area seems a good target for this Wednesday.”

EUR/USD currently sits unchanged around the 1.2935 price zone this Wednesday in Asia. To the downside, 38.2% retracement support is noted at 1.2875, while further support lies at 1.2840, according to Ms. Bednarik.