Forex: What to do with EUR/USD? – UBS, BTMU and Commerzbank

FXstreet.com (Barcelona) - The single currency is marching buoyant well above the 1.3300 figure on Thursday, after a well-received Spanish bond auction, following the broader trend in decreasing yields. In addition, positive comments by EC's Van Rompuy were supportive of the euro, saying (hoping?) that the euro zone should be back to the growth path in 2013-01-17

Strategists Geoffrey Yu and Gareth Berry at UBS remain bullish on the cross, arguing, "As long as support at 1.3201 remains in place, the risk is for resumption of strength to test the significant resistance at 1.3493".

In the same line, Lee Hardman, Currency Analyst at BTMU, says "The euro still remains under upward pressure in the near-term as both confidence in euro-zone assets is returning, and the ECB is being out-eased by other major central banks despite the euro-zone economy underperforming".

Karen Jones, Head of FICC Technical Analyst at Commerzbank, comments, "EURUSD continues to ease back from the 1.3400 resistance - this is viewed as a small retracement ahead of any further gains. The recent break through the 1.33085 high suggests unfinished business on the topside. It has introduced scope for a rally towards tough long term resistance at 1.3485/1.3560".