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Forex Flash: What to do with EUR/USD? – Commerzbank, Danske Bank and UBS

By FXstreet.com,  January 11, 2013, 02:56:00 AM EDT

FXstreet.com (Barcelona) - The shared currency is resuming its march higher on Friday, keeping the positive momentum after the ECB has left its monetary policy unchanged on Thursday, in line with forecasts, although the later press conference by President Draghi lacked the dovish tone expected.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, assesses yesterday steep upside and commented "We will ideally see failure circa 1.33085 for a slide back to the 1.2970-1.3000 key support. This is the location of the 6-month uptrend, the 50% retracement of the move up from November and the 55 day ma".

In addition, Senior Analyst S.Roed-Frederiksen at Danske Bank argued, "We forecast 1.35 before summer but doubt that there will be a strong uptrend in EUR/USD as positioning data indicate that the market has now turned net long the euro. The upcoming debt ceiling and fiscal negotiations are likely to provide some noise and could lead to temporary dollar strength in February".

Gareth Berry and Geoffrey Yu, Strategists at UBS, confirms the Swiss bank's now bullish stance on the cross, saying, "The recent strength has seen the momentum cross higher and the risk is for a break above 1.3308 to extend gains to 1.3386. Support lies at 1.3037".




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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