Right now the euro is taking a rest, combining recent increases at the high end of its range, after reaching above the 7 – month high at the begin of the week supported by purchasing data. The EUR/USD took a peak above the 1.3172 level, which capped rallies and gains in September, and attained its greatest price since early May at 1.3185. Nevertheless, the pair lost momentum and entered a consolidation period that has extended through late trading hours.

With only second-grade data in the calendar and no information from Europe, agenda stays on the US ‘financial cliff’ talks. Comments from Republican House leader Boehner helped to boost a bit of confidence as a willingness was indicated by him to raise taxation charges for households making a lot more than $1 million. US stocks are generally higher while European indexes trade sideways.

“Investors have so far remained optimistic that an understanding (on US budget talks) can be attained in a sufficiently timely manner”, says Head of Currency Strategy at Wells Fargo. “However, with a year-end deadline for a offer now looming nearer, those budget developments — or lack thereof — should become increasingly important through the end of December”.

Euro touches 7-month high, holds favorable prognosis.

The common currency set a fresh 7 month high of 1.3185 on Monday, keeping short term emphasis on the upside for those following. However, reduction of 1.3120, into and below the immediate support zone, could delay the bullish possibility. The pair was last at the 1.3170 zone.