FXstreet.com (Barcelona) - Euro sentiment is enjoying rosy moments after the Spanish government has released the 2013 budget figures on Thursday, rapidly leaving behind the strong resistance at 1.2900 after rebounding from the key support at 1.2826, the MA200d.

K.Jones, Head of FICC Technical Analysis at Commerzbank, comments “It is possible that this correction lower is over and the market will try the topside (favoured), however we remain unable to rule out a stab down to the trendline support at 1.2649 prior to recovery”. The expert also adds that up-moves will find strong barrier at 1.3050, eyeing the region of 1.3150/80 once and if pierced.

Ahead of the key Spanish events due later, strategist J.Foley at Rabobank argues “EUR/USD is currently well supported having bounced off the 200 day sma yesterday (EUR/USD 1.2826). Going forward this level will remain key support, though we do see the risk of sharper pullbacks on a 1 mth view. Medium-term we see a weaker dollar pushing EUR/USD towards 1.3500”.

C.Walker, analyst at UBS, maintains the neutral stance on the cross suggesting “A break above 1.3001 would signal scope for a move to 1.3041 and even, 1.3172. The important support lies at 1.2758”.