Forex Flash: What can we expect of EUR/USD? – Commerzbank, Danske Bank and BBH

FXstreet.com (Barcelona) - The single currency remains trapped around the psychological mark at 1.3000 on Tuesday, waiting for a positive result from the ZEW survey in Germany in order to extend the current rebound from weekly lows below 1.2940.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “Near term rallies will find resistance at 1.3033/62 (minor Fibo) ahead of the resistance line drawn from the February peak, this is located at 1.3170. However only above the 1.3243 recent high would negate our bearish outlook and this is not favoured”.

Analyst S.Roed-Frederiksen at Danske Bank commented, “EUR/USD is back above 1.30 but sentiment appears to have shifted to a more bullish dollar stance recently following the sharp rise in US bond yields and USD/JPY breaking above 100”.

Furthermore, analysts at BBH argued, “a euro bounce into the $1.3030-60 area may offer a new selling opportunity. In the bigger picture, we look for the euro to retest the year's low near $1.2750 in the second half of Q2”.