Forex Flash: What does the EUR/USD has to offer? – UBS, Westpac and Commerzbank

The bloc currency is clinging to the upper end of the intraday range on Monday, hovering over the region of 1.3225/30 ahead of the outcome of the Italian elections, due in the European afternoon.

G.Yu and G.Berry, Strategists at UBS, confirm the bank’s neutral stance on the cross, adding, “A closing break below 1.3187 would be a bearish development; exposing 1.3063 ahead of 1.2998. Resistance is at 1.3291 ahead of 1.3434”.

In addition, Strategist Sean Callow at Westpac, comments, “So long as there is no shock Berlusconi win in Italy’s election today and with Fed balance sheet expansion contrasting with the ECB’s, the euro should find support around 1.3200 and grind back towards 1.35 multi-week”.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, argues that the cross tested the 7-month uptrend last week in the vicinity of 1.3202, confirmed by a weekly close below this level. “Near term rebounds should find that the previous 3 month trendline should now act as resistance at 1.3317 and the outlook will stay negative below 1.3435”, concludes the expert.