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

FXstreet.com (Barcelona) - The shared currency remains glued to the area of 1.2950 on Tuesday, waiting for the ZEW Survey in Germany and the EMU to break the dullness surrounding the cross. The parliamentary vote on Cyprus’s rescue package is also due, although uncertainties yet remain regarding its occurrence today.

G.Yu and G.Berry, Strategists at UBS confirm the bearish outlook on the cross, arguing, “Support is at 1.2876, a break below this would extend weakness as there is scope for a test critical 1.2662. Resistance is at 1.3021 ahead of 1.3107”.

In addition, L.Christensen, Chief Analyst at Danske Bank, commnents, “Today focus will remain on Cyprus and whether the parliament will pass the bailout; this uncertainty could continue to weigh on EUR today”.

After yesterday’s attempt to follow through the psychological mark of 1.3000, Karen Jones - Head of FICC Technical Analysis at Commerzbank – added, “This may well be bettered today with the two month downtrend channel resistance line at 1.3067 then being eyed. This should cap, though. While the next higher 1.3107 Friday high caps on a daily New York closing basis, we will retain our medium term bearish forecast”.

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