Euro climbs above $1.3100 after breaking technical resistance

NEW YORK Mon Jan 7, 2013 11:05am EST

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NEW YORK Jan 7 (Reuters) - The euro climbed as high as $1.3105 on Monday in technical trading as investors adjusted positions ahead of a European Central Bank policy meeting later in the week.

Some analysts said the euro was more likely to remain under pressure as markets refocus on the euro zone's debt crisis, with any indication of monetary stimulus or comments on economic weakness seen pushing the euro zone common currency lower.

But some investors speculated there was too much bearishness and that if the ECB was not too negative, the euro could rally.

Currency speculators became net buyers of the euro for the first time since August 2011 in the week to Dec. 31, according to data from the Commodity Futures Trading Commission released on Friday.

The euro was last up 0.3 percent at $1.3102, just off the session peak of $1.3105. The breaking of resistance at $1.3085 prompted a further flurry of technical buying, analysts said.

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