EURUSD – With the MACD below its zero line, reflecting bearishness, focus is on the momentum tools as a closing cross lower would reinforce the bearish theme. Initial support is at 1.2955, the March 8 low, and a break below this would open 1.2876, the December low, which also links with the mid-point of the July 2012 to February 2013 advance at 1.2877. We expect this to give way in the near-term, and extend the bear trend to 1.2661, the November low. We maintain the short entered at 1.2967, targeting 1.2670, with a stop at 1.3145, just above the Mar 8 high.
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UBS Investment Bank