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

FXstreet.com (Barcelona) - The bloc currency is hovering over the key mark of 1.2800 on Wednesday, trading in a soft tone ahead of the ECB gathering due tomorrow.

“The market remains directly offered intraday below the 1.2931 resistance line. Longer term we target the 78.6% Fibonacci retracement at 1.2400 and then 1.2042, the 2012 low”, suggested Karen Jones – Head of FICC Technical Analysis at Commerzbank – following another failed attempt to break above the area of 1.2880/90 (200-day moving average).

Against the backdrop of the ECB meeting, Derek Halpenny, Analyst at BTMU, commented, “We do not expect any change in monetary stance and also expect President Draghi to state clearly the ECB view that Cyprus was very unique and that type of banking sector bailout deal would not be repeated elsewhere in the euro-zone”.

G.Yu and G.Berry, Strategists at UBS confirm the bank’s bearish outlook on the cross, saying, “As bearish trend persists, focus is on initial support at 1.2751, a break below this would extend weakness to 1.2662. Resistance at 1.2900”.