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21 Mar 2013
Forex Flash: What can we expect of EUR/USD? – Commerzbank and UBS
FXstreet.com (Barcelona) - The sentiment around the single currency remains depressed on Thursday, with the cross hovering over 1.2900 after poor PMI data from the euro zone dragged the euro to the area of 1.2880. The shared currency posted no reaction after the well-received Spanish bond auctions, as Cyprus woes continue to weight on the EUR.
“EUR/USD is to further bounce off Tuesday’s low at 1.2844 and now targets the minor psychological 1.3000 level. If bettered, the two-month downtrend channel resistance line at 1.3026 will be in focus as well. This should cap with the next higher 1.3107 Friday high on a daily New York closing basis, however”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank. The expert added that while the cross trades below these levels, the bearish bias would prevail.
Furthermore, G.Yu and G.Berry, Strategists at UBS, keep the bearish perspective on the cross, saying “Any upside will be limited as bear trend persists. Resistance at 1.2996 ahead of 1.3107 – which should hold. Support is at 1.2844 ahead of 1.2662”
“EUR/USD is to further bounce off Tuesday’s low at 1.2844 and now targets the minor psychological 1.3000 level. If bettered, the two-month downtrend channel resistance line at 1.3026 will be in focus as well. This should cap with the next higher 1.3107 Friday high on a daily New York closing basis, however”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank. The expert added that while the cross trades below these levels, the bearish bias would prevail.
Furthermore, G.Yu and G.Berry, Strategists at UBS, keep the bearish perspective on the cross, saying “Any upside will be limited as bear trend persists. Resistance at 1.2996 ahead of 1.3107 – which should hold. Support is at 1.2844 ahead of 1.2662”