Forex: EUR/USD extended gains on Van Rompuy and Spain auction (Barcelona) - The widely expected Spanish bond auction found lower average yields, selling a total of €4.5 through 3-year bills (at 2.713%, from previous 3.358%), 5-year bills (at 3.770%, from 3.988% previously) and 2041 bonds (5.696%, from previous 6.002%). As results came in, so the EUR/USD breached above the 1.3350 previous European morning resistance area.

President of the European Council Van Rompuy words also supported euro buying after saying that Europe should get back on growth in 2013. On the negative side, the EMU construction output contracted -0.4% in November to an annualized fall from -4.1% to -4.7%.

“EURUSD established support at 1.3265, lending to a bout of consolidation on the session”, wrote independent analyst Richard Lee. “Any upside corrections at this point will target resistance at the 1.3403 January 14th session high”, he added, pointing to a second support at 1.3140.