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Forex Flash: What does the EUR/USD have to offer? – Westpac, UBS and Commerzbank

FXstreet.com (Barcelona) - The single currency is holding on to the key level at 1.3100 on Monday, after the Services PMI prints in the euro zone surprised investors ticking higher in April, as well as the sentiment confidence gauged by the Sentix index.

Sean Callow, Strategist at Westpac, commented, “1.32 remains hard work, especially after Draghi was worried enough about the outlook to consider a negative deposit rate. But Spanish and Italian yields are near 2 1/2 year lows so investors are showing their confidence in the ECB bond backstop. Still prefer to sell above 1.32”.

The Swiss lender UBS is now neutral on the cross. Its Strategists G.Berry and G.Yu suggested, “Initial support is at 1.3033, a break below this would expose 1.2995 and then 1.2936. Resistance is at 1.3243 ahead of 1.3342”.

“A break back below the short term uptrend at 1.3047 should still be seen in the near future. A fall through the 55 day moving average at 1.3027 is still needed to confirm a trend reversal lower, though”, argued, Axel Rudolph, Senior Technical Analyst at Commerzbank.

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