Analysts at SE Banken claim that last week the trade ended very bearish for the pair EUR/USD. The specialists note that there was a downside key-week reversal and a “bearish engulfing” pattern that confirmed that fact that the downtrend resumed. In their view, any advance from Monday's minimum at 1.2860 will be corrective and will bring the rate in the near future to the new minimums in the 1.2710 zone.

Currency strategists at Commerzbank also believe that in the coming weeks the single currency will remain under pressure as the euro zone debt crisis is likely to worsen. The economists mentioned the events in the indebted Belgium where there’s no political leader due to the government crisis that lasts already a month. While the greenback has overcome the impact of the discouraging economic data, euro is affected from several directions.

More info about FBS