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

The euro has jumped to the boundaries of 1.3580 on Thursday, ahead of the ECB gathering due later. It’s worth noting that market consensus is unanimously expecting the central bank to remain on the sidelines and leave the benchmark rate intact at 0.75%, while Draghi’s press conference would be more dovish, adding selling interest to the shared currency.

Strategists G.Yu and G.Berry keeps the bullish stance on the cross, suggesting that “Near-term resistance is at 1.3615, a break above would open 1.3711 ahead of the critical 1.3836. Support at 1.3439 should hold any setback”.

“We suspect that this was a false break above 1.3485/1.3564, however it is a little too early to tell. We have a 3 month support line at 1.3211 BUT key support is the 1.3125 6 month uptrend”, commented Karen Jones, Head of FICC Technical Analysis at Commerzbank. The expert also added that upside attempts would face initially with the area around 1.3600/15