Results out of the euro bloc were not rosy, however the euro has managed well to survive and escalate to higher levels.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, remains bearish on the cross, and comments that technical studies – break down of a symmetrical triangle – would imply a decline to the 1.2480 region. About the recent rebound she argues “this has not dislodged any resistance of note and is viewed as merely a minor correction. Rallies are expected to find initial resistance at 1.2800 and be contained by the 1.2890/92 short term downtrend”.
In the same direction, Geoffrey Yu, researcher at UBS confirms the bearish outlook on EUR/USD, arguing “Resistance is at 1.2845/76. While this holds, there is scope for resumption of weakness and watch for a test of important support at 1.2608”.