The fiscal cliff euphoria seems to have completely worn off on Euro trading. EURUSD has fallen 80 points in today’s forex session, despite the lack of news over the European and Asian hours.
The biggest piece of news came from Germany, where unemployment rose for the ninth straight month, but was still better than expected. In Spain, jobless claims fell by 59,094 in December, which was much better than an expected 62,500 rise in unemployment claims. Neither release had a significant effect on price action.
A lot of the attention today will probably be turned to today’s release of the minutes from the Fed’s December meeting. Investors might be looking for further information about the new policy to keep monetary stimulus dependent on the unemployment rate.
The Euro just hit a new session low around 1.3100 against the US Dollar at the time of this writing. From here, support could be provided by the key 1.3000 line, and resistance could come in at the upward trend line from November, currently at 1.3122.
EURUSD Daily: January 3, 2013
--- Written by Benjamin Spier, DailyFX Research