Forex Flash: What lies ahead of EUR/USD? – Commerzbank and UBS

FXStreet Team FXStreet

FXstreet.com (Barcelona) - The upside of the single currency has faltered above the key resistance at 1.3100 on Wednesday, helped by mixed results out of the Spanish bond auctions and lower-than-expected retail sales in the bloc composite during October.

As Karen Jones, Head of FICC Technical Analysis at Commerzbank, puts it “EUR/USD continues to grind higher and the market remains well placed to tackle key resistance at the 1.3150/80 zone. This consists of the recent high and triple Fibonacci retracement and this remains tough overhead resistance”. The expert adds that a break above 1.3180 would then target higher levels at 1.3487 and 1.3519

Geoffrey Yu, Strategist at UBS, confirms the Swiss bank’s bullish stance on the cross, adding “The pair is approaching significant resistance at 1.3140/72 - a break above would extend the broader recovery phase to 1.3284. Support lies at 1.3046”.

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