In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the par “has eroded the 1.2793 gentle sloping support line drawn from the November 2012 low to the 2013 lows… However the focus is now on the downside and in particular the 1.2740 April low. Below 1.2740 we target 1.2661 November low en route to the 1.2050 200 MONTH ma”.
Strategists G.Berry and G.Yu at UBS confirm the bearish outlook on the cross, arguing, “Yesterday the pair closed below the key support at 1.2797. Next support focus is at 1.2663. Resistance is at 1.2898”.