FXstreet.com (Barcelona) - The bloc currency is trading well into the negative territory on Thursday, with market participants anxiously waiting for the 10-yr Spanish bond auction due later on in the European morning, to see whether this initial and strong start could be reverted.

K.Jones, Head of FICC Technical Analysis at Commerzbank, comments that the EUR is still losing ground after reaching the 1.3150/80 region, however warns “we are cautious given the extent of the recent run up, and note that the slow stochastics has started to roll over, together with the daily RSI”. Further technical studies suggest the possibility of a decline to 1.2932/1.2829, allowing potential upside attempts if they hold well, the expert concludes.

On the other hand, the research team at Danske Bank recommends going long at levels below 1.3000, targeting the 1.3180 region.

G.Berry, analyst at UBS, mantains the bullish oulook on the cross saying that “important support lies at 1.2916. Downside moves appears to be limited and will be corrective as long as this level holds. Resistance is at 1.3122/72”.