Both banks remain bearish on the pair. Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “last week eroded a major band of support 1.2934/ 1.2885, the 78.6% retracement, 2012 uptrend and 55 week ma. The failure at this key juncture leaves the market to start this week in a vulnerable state”. The expert also added that 1.2796 and then ytd lows at 1.2740 remain in focus.
In the same line, Strategists G.Berry and G.Yu at the Swiss lender argued “With the bear trend intact focus is on the key support at 1.2797. A break below this would suggest scope for further downside. Resistance is at 1.2917”.