With markets mainly focusing on Spain in the near term, Senior Currency Strategist at Rabobank, Jane Foley, assesses “while the degree of any market tension over the weeks ahead will likely be calmed by the knowledge that the ECB’s OMT awaits, we see risks of pullbacks in EUR/USD potentially to the 200 day sma at EUR/USD1.2836”
Karen Jones, Head of FICC Technical Analysis at Commerzbank, comments that EUR/USD rallies would find resistance at 1.3030/84 followed by the area at 1.3140/80. The expert also highlights that important support levels lie at 1.2890/36, and “a failure here would be viewed as psychologically negative, it should be noted that we are viewing the pattern more negatively, it looks more like a potential top than a continuation pattern at this stage”.
Gareth Berry, analyst at the Swiss UBS, argues that the Alpine bank has shifted to a neutral outlook on the cross from bullish, adding at the same time “a recovery through 1.3056 is required to trigger a potential test of 1.3140-72. Support lies at 1.2921 ahead of 1.2802”.