Euro has completely flip-flopped in contact with our medium-term resistance and the flow of European good news should be exhausted, the wait and see attitude could now happen. The investors are now focused on the “fiscal cliff”.

After approval by a large majority of the Greek bailout by the German Parliament and the buyback plan in Athens of 10 billion Euros of debt outstanding at prices higher than expected, it is hard to imagine what could give more impetus to the currency.

Unless a sudden release negotiations overseas or a request aid package of Madrid, which just make one for the banking sector (37 billion paid in the coming days), the European currency could temporarily struggling to take advantage of the next resistance. Spain has also recently issued a long-term bond disappointing and EU ministers are still unable to agree on a unique mechanism of banking supervision. They meet again on December 12.

Only risk appetite ambient, strengthened by encouraging Chinese statistics and the good performance of the Shanghai Stock Exchange, could help for further movement.

Graphically, the Euro will probably breathe near the USD 1.29 to find the impetus to break 1.3130 and consider a return to its annual high points. Aggressive sales are discouraged in this kind of configuration, we will be away from parity in the meantime.