From a sentiment perspective, recent developments in the US have been supportive for risk as the House of Representatives approved a bipartisan deal to raise taxes for high earners, thus avoiding the so called ‘fiscal cliff’. On the back of the above the EUR/USD currency pair is now trading near the recent range resistance highs and is currently around 20 pips below the 1.3307 peak level. Any sustained break above these previous resistance highs has the FE100 expansion of 1.2661 > 1.3125 > 1.2875 as a focus (see W1 chart below) and this is located around the 1.3337 area. A move above this point has prior ... (full story)