Forex Flash: What to do with EUR/USD? – Commezbank and UBS

FXstreet.com (Barcelona) - The euro is now paring early losses after the delay on a Greek deal has dragged the cross below 1.2740, although it has managed to climb back above 1.2790 after Chancellor Merkel has suggested lower rates and bigger EFSF guarantees directed to aid Greece throughout 2016

In the view of Karen Jones, expert at Commerzbank, technical studies would suggest declines to the 1.2660 region en route to deeper levels around 1.2480. "EURUSD is showing signs of failure at the resistance line at 1.2842 - we should see this together with the 55 day ma at 1.2903 hold the topside and provoke failure".

Geoffrey Yu, researcher at UBS, reminds the Swiss bank's neutral outlook on the cross, commenting "Fresh selling materialized this morning dragging the pair down towards support at 1.2691 ahead of 1.2662. Initial resistance is at 1.2876, a break above would see upside potential towards 1.2901".