FXstreet.com (Barcelona) - Growth in New home sales data in September was revised lower from 0.389M to 0.369M, triggering more “risk off” reaction in the FX market. The October figure came in at 0.368M. The EUR/USD fell to as low as 1.2880 on the release, but the market moved quickly to the other way and is rallying above the 1.2900 mark. At the moment of writing, the pair has gone up to 1.2922.

The current “risk on” jump is believed to have been triggered by the Republican Boehner's optimistic words on the “fiscal cliff” as he said he’s willing to put revenues on the table if accompanied by spending cuts, according to Adam Button, at Forexlive.com.

“My outlook though remains bullish, for a break through 1.3020 static resistance, en route to 1.3170 high”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to intraday support at 1.2874, as a violation of that level will signal, that the whole rise from 1.2736 is complete.