What to expect of EUR-USD october 16 2012

forex trading outlook today - What to expect of EUR-USD october 16 2012 : The single currency has not only reached the key resistance mark at 1.3000, but it also rapidly left it behind, printing a fresh 2-week high at 1.3063 on rising rumours about an imminent Spanish bailout.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggests "the rebound has managed to neutralise the technical indicators, and the market remains sidelined. We continue to suspect that the market will struggle to regain 1.3072… However, while underpinned by the 1.2801 3-month uptrend, further upside probes remain plausible". The expert also adds that a breach of 1.2801 would accelerate the downside to the area around 1.2600 en route to 1.2472
Jane Foley, analyst at Rabobank, aknowledges that Spain remains in centre stage and argues "that an increase in tension in Spain could force pullbacks in EUR/USD, we now expect these to be limited to the EUR/USD1.2800 area on a 1 mth view, with EUR/USD potentially remaining essentially range driven into year-end".

Chris Walker, analyst at UBS, comments that the Swiss bank remains bullish on the cross, adding, "initial resistance is at 1.3072, a break above would open doors to 1.3172. Support lies at 1.2802".

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