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Forex Flash: What lies ahead of EUR/USD? – Commerzbank, UBS and Westpac

FXstreet.com (Barcelona) - The bloc currency is hovering over the key limestone of 1.3000 on Monday, giving away part of the initial gains after the deal on Cyprus’s bailout pushed the cross to the vicinity of 1.3050 overnight.

Senior Technical Analyst at Commerzbank Axel Rudolph suggests, “EUR/USD’s bounce off the 200 day moving average at 1.2882 and this week’s low at 1.2844 continues with two month downtrend channel now having been left. Minor resistance around the 1.3075 March 12 high stands to be tested today.”

Despite the last events in Cyprus, Strategists G.Yu and G.Berry at UBS remain bearish on the cross, arguing “The latest strength does not change the bearish picture and there is a strong resistance at 1.3107. Support is at 1.2844 ahead of 1.2662”.

In addition, Sean Callow, Strategist at Westpac, comments, “The Cyprus deal isn’t quite nailed down but it’s hard to see EUR/USD much beyond 1.3100 as Italy’s political standoff remains, activity seems to be faltering again and EUR short positioning is not extreme”.

Italy Consumer Confidence down to 85.2 in Mar from 86 in Feb

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