Forex Flash: What to do with EUR/USD? – Danske Bank, Commerzbank and UBS
Forex pairs in this Article »
EUR/USD
FXstreet.com (Barcelona) - The euro continues its march north on Wednesday, posting gains for the third consecutive session, as rumours involving the likeliness of a Spanish bailout have been propping up the cross, ahead of the EU Summit that will kick in tomorrow.
S.Holbek, Senior Analyst at Danske Bank, comments "we see a good chance that the market could become disappointed by the end of this week. Hence, the EURUSD probability space for the rest of this week is in our view skewed to the downside".
Assessing the last bull-run, Karen Jones, Head of FICC Technical Analysis at Commerzbank argues that the pair's "breach of the short-term downtrend has shifted the focus and the near term risk to overhead resistance at 1.3173/80", although the expert warns about the likelihood of failure in that area. Should that barrier be trespassed, further impulse would then target 1.3487/1.3536
Chris Walker, analyst at UBS, remarks that the last move by Moody's, keeping Spain in the investment grade space, has intensified the risk appetite, already buoyed by rumours about a Spanish bailout and comments that the Swiss bank is maintaining its bullish outlook on the cross adding "a break above 1.3072 would trigger further acceleration of the recovery to 1.3172. Support lies at 1.2891 ahead of 1.2802".
S.Holbek, Senior Analyst at Danske Bank, comments "we see a good chance that the market could become disappointed by the end of this week. Hence, the EURUSD probability space for the rest of this week is in our view skewed to the downside".
Assessing the last bull-run, Karen Jones, Head of FICC Technical Analysis at Commerzbank argues that the pair's "breach of the short-term downtrend has shifted the focus and the near term risk to overhead resistance at 1.3173/80", although the expert warns about the likelihood of failure in that area. Should that barrier be trespassed, further impulse would then target 1.3487/1.3536
Chris Walker, analyst at UBS, remarks that the last move by Moody's, keeping Spain in the investment grade space, has intensified the risk appetite, already buoyed by rumours about a Spanish bailout and comments that the Swiss bank is maintaining its bullish outlook on the cross adding "a break above 1.3072 would trigger further acceleration of the recovery to 1.3172. Support lies at 1.2891 ahead of 1.2802".
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