Forex Flash: What can we expect of EUR/USD? – Commerzbank, Westpac and UBS

The single currency pierced for a few moments the key support at 1.3600 on Monday, following the raise in the Spanish unemployment by 132.1K during January to almost five million people.

“The move on Friday does look a little over- stretched and we would allow for some retracement towards the 6 week accelerated uptrend at 1.3459 ahead of further gains”, commented Karen Jones, Head of FICC Technical Analysis at Commerzbank.

In addition, Sean Callow, analyst at the Australian Westpac, keeps the optimism ahead of the ECB meeting, saying “Dips remain shallow ahead of ECB meeting Thu where Draghi should be upbeat again. Spec long positioning appears to be moderate at this stage. Target now at 1.38”.

In line with the above, G.Yu and G.Berry at UBS keep the bullish stance on the cross, arguing “Any setback in the near-term should be limited as trend indicators are pointing north. Resistance is at 1.3711 ahead of 1.3833. Support is at 1.3541”.