Mid American morning, the market saw a strong turn around in sentiment, triggered by some positive comments about US fiscal cliff discussions: an agreement could be reached there faster and easier than initially expected. Is also true that 1.2880 stands as a huge static support in the EUR/USD, that actually converges now with the 38.2% retracement of the latest bullish leg. Short term bullish according to the hourly chart, the pair returned to opening levels, again capped below 1.2950, yet far from the short term bearish tone seen yesterday by this time of the day; accelerations above 1.2950 will expose the 1.3010 ... (full story)