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

FXstreet.com (Barcelona) - The shared currency is trading in the defensive territory on Monday, after disappointing data from Chinese GDP and industrial production dragged the cross to fresh lows overnight.

G.Yu and G.Berry, Strategists at UBS commented, “Resistance is at 1.3138 ahead of 1.3228. Support is at 1.2988 ahead of 1.2896”, confirming at the same time the bank’s neutral outlook on the cross.

“EUR/USD overnight again tested and failed at its 55 day ma at 1.3135. Current indications remain that the market will fail here (Elliott wave count and TD perfection set-up) and we look for the resumption of the down move”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.