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FXstreet.com (Barcelona) - The EUR/USD came one pip short from hitting the 1.3300 handle during the Asian session rally triggered by the approval of the tax cuts bill by the House of the Representatives later signed by President Obama in the US. The "fiscal cliff" was averted.

Profit taking brought the pair down to 1.3253, but risk sentiment returned ahead of the Markit manufacturing PMI data in Europe. The French PMI came in line with prediction, improving 0.1 to 44.6. The Spanish figure eased from 45.3 to 44.6 in December, disappointing consensus of 45.1. In Italy, data beat expectations (45.3), by rising from 45.1 to 46.7. The Greek data eased from 41.8 to 41.4.

Just released German and EMU manufacturing PMI disappointed by falling to 46.0 (from 46.8 - consensus of 46.3) and 46.1 (from 46.2 - consensus of 46.3), respectively. Ahead of the figures, the EUR/USD wasn't able to move higher than 1.3294 and is currently seen quite still, at 1.3279.

"Scope remains to challenge the 1.3487/1.3528 resistance area. This is where the February high, 50% of the 2011-to- 2012 decline and the 200 week moving average all come in and as such
should offer strong resistance and provoke failure", wrote Commerzbank analyst Karen Jones, pointing to 1.3360 and the 1.3381/86 March and April highs on the way.

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