Forex: EUR/USD settles above 1.3200

FXstreet.com (Córdoba) - After being rejected once again by the 1.3300 area, the euro changed course and retraced intraday gains versus the dollar as risk appetite ebbed during the American afternoon as positive US data failed to support sentiment in the face of the looming fiscal cliff.

However, after dropping over 80 pips, EUR/USD found support at 1.3213 and settled in a slim range where it has been trading within the last hours. At time of writing, EUR/USD is quoting at the 1.3240 area, still up 0.1% on the day.

After rallying over 400 pips since December 7, the euro reached a fresh 8-month high of 1.3307 on Wednesday but failed to consolidate above the 1.3300 mark amid thin trading conditions.

From a technical view, the UBS analyst team holds a bullish bias for EUR/USD and sees "Wednesday's setback as a correction to unwind the over-extended upside conditions". According to them, important support lies at 1.3143 while resistance is at 1.3308/86.

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