Euro recovers when Greece should once again be saved while the “fiscal cliff” and the situation in the Eurozone could continue to focus attention of operators in the coming days.

Following an initial delay of eight days because of divergences between the EU and the IMF, investors expect that the finance ministers of the Eurozone announce releasing of three new aids to Greece for a sum of 44 billion euros.

In the United States, tensions between Democrats and Republicans subside when the first formal negotiations between the White House and Congress, initiated on November 16 in Washington, show willingness will to reach an agreement and avoid fiscal cliff. For its part, the Federal Reserve said during its last meeting, it had increased its purchases of assets at the beginning of the next year.

If these events are more likely to support the European currency, the fundamentals do not yet argue in its favor. Eurozone officially plunges into recession in the third quarter for the second time in three years.

Technically, the USD 1.266 level has stopped the bearish trend while the Euro reaches USD 1.28 in contact with its 20-day moving average. Above 1.2858, the currency pair would settle back into its horizontal channel but beware of profit taking near this threshold which could coincide with the verdict of the Euro Group and encourage investors to sell the news.