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FXstreet.com (Barcelona) - The single currency has been catapulted almost one big figure after the US 'fiscal cliff' was averted in the very last moment, although uncertainty still remains regarding the process and the future steps of the US government.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the cross to consolidate between 1.3061 and 1.3155/40, gathering strength for another attempt to higher levels. "Beyond this consolidation, scope remains to challenge the 1.3487/1.3528 resistance area. This is where the February high… and the 200 week moving average all come in and as such should offer strong resistance and provoke failure", assessed the analyst.

With the US 'fiscal cliff' as leitmotif, Senior Analyst Morten Helt at Danske Bank comments "The dollar is likely to come under pressure in the near term. The fiscal deal has removed some of the downside risks in the market and we see further upside potential for EUR/USD today".

Strategists Gareth Berry and Geoffrey Yu at the Swiss bank UBS have confirmed the bank's bullish stance on the cross, arguing "There is potential for a break above resistance at 1.3386 and extend the strength to 1.3493. Support lies at 1.3159 ahead of 1.3093".

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