Flash: What’s the sentiment around the EUR/USD hoy? – UBS and Commerzbank

FXstreet.com (Edinburgh) - The shared currency is alternating gains with losses on Thursday, with the EUR/USD meandering around 1.3435/40 after mixed results from PMI gauges in Euroland.

Strategists at the Swiss bank UBS remain bearish on the pair, arguing, “Fresh selling developed on Wednesday after testing the resistance at 1.3564. This reinforces the bearish theme and our support focus is at 1.3404, a breach of which would expose 1.3293. Critical resistance is at 1.3627”.

Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested the pair’s “brief spike to Wednesday’s high at 1.3584 was followed by some sharp downside momentum with the 1.3417 June high currently being tested. Below it lie the current November low at 1.3295, the 50% retracement of the move up from July at 1.3294 and the 200 day moving average at 1.3218 all of which are back in the picture”.

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