EUR/USD: Trading Higher this Morning

EUR/USD: Trading Higher this Morning

On Monday, for the 24 hours to 23:00 GMT, EUR declined 0.25% against the USD and closed at 1.3194, after German Chancellor Angela Merkel cautioned that the economic environment would be more difficult in 2013 than this year, and that Europe's sovereign debt crisis is far from over, though progress has been made.

In the Asian session, at GMT0400, the pair is trading at 1.3261, with the EUR trading 0.51% higher from Monday's close, as risk appetite increased, amid optimism that the US lawmakers has passed a legislation to avert the so-called fiscal cliff of automatic spending cuts and tax increases.

The pair is expected to find support at 1.3189, and a fall through could take it to the next support level of 1.3117. The pair is expected to find its first resistance at 1.3316, and a rise through could take it to the next resistance level of 1.3372.

Trading trends in the pair today are expected to be determined by the release of purchasing managers' index manufacturing data in Germany, France and the Euro-zone.