Forex Flash: Short EUR/USD under 1.3020 – Westpac

FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at Westpac, “We are short the EUR/USD at 1.3020. Key longer term moving averages around 1.2900 should stymie the topside but we are nevertheless inclined to tighten stops here (to 1.2950)” – EZ markets are proving resilient to both Italy’s political deadlock and the precedent set in Cyprus for higher levels of private sector risk ownership in the region’s banking system.

However, “Draghi struck a dovish tone this week and IP data next week more likely than not to disappoint, ultimately keeping EUR downside in focus. EUR/JPY and EUR/CHF still trading heavily, implying that recent EUR/USD stability is more a USD story.” Callow adds.