EUR/USD opens above 1.27; 'fiscal cliff' in focus

 The EUR/USD closed lower for a third straight week on Friday around 1.2710 and spot opens Asia virtually unchanged beneath a key 38.2% retracement level at 1.2740. A descending trend line at 1.2680 is supporting price in the short term. 

"Having tested 1.2689 on Friday, break below that level would open doors for a test of next Fibo support around 1.2610," says Valeria Bednarik, Chief Analyst at FXstreet.com. The analyst also identifies the 1.2740 area as potential resistance (38.2%, 1.2040 /1.3170), with the 100-day EMA (today at 1.2785) likely to attract offers above there. 

The U.S. dollar has advanced 2.4% against the euro since Oct 21, primary on the back of safe haven bids leading up to last week's U.S. election, and now attention quickly shifts to the 'fiscal cliff' - investors are likely to continue to seek safe haven refuge in anticipation of complex fiscal and budgetary negotiations between lawmakers on Capitol Hill needed to keep the American economy from sliding back into recession.