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Coming off of a 7-day rally, the euro climbed to its strongest level against the greenback since May 1st today in Asia-Pacific trade, as markets appear to be somewhat encouraged on signs of progress in the U.S. "Fiscal Cliff" negotiations, lifting risk sentiment. The EUR/USD has so far risen to as high as 1.3255 and last trades around 1.3245, up 0.2% on the day and up 2.4% heading into year-end.

On the European front, Standard & Poor's agency raised Greece's credit rating late Tuesday, and this event is likely to keep EUR short-term bid. From Tuesday's S&P statement:

The stable outlook balances our view of eurozone member states determination to support Greece's eurozone membership and the Greek government's commitment to a fiscal and structural adjustment against the economic and political challenges of doing so.

Richard Lee, Forex Analyst at FXstreet.com offers his analysis of EUR/USD:

Closing above the 1.3180 resistance figure, EURUSD prospects are looking bullish. The upside penetration opens scope for a medium term advance on the 1.3505 fib resistance level. Any retracement will likely be held at bay by the 1.3157 figure.

If EUR/USD continues its advance, the next bullish target may lie at 1.3350 (200-week EMA), then the 50% retracement of the 2011 to 2012 decline at around 1.3500. Mr. Lee identifies support levels at 1.3091, 1.3123 and 1.3175.

Source: EUR/USD Looking Bid On U.S. 'Cliff', Greece Upgrade