Forex Flash: Holding the 1.28/29 area is vital in sustaining a longer-term bull outlook - TD Securities

"No great surprise that the short-term bear trend in EUR/USD extended further this week," pointed TD Securities FX analysts Shaun Osborne and Greg Moore. With the EUR/USD bottoming at 1.2965 during Friday's American session, the pair has completed a 745 pips decline from February 1st.

However, according to to TDS analysts, there is still hope for Euro bulls as the pair remains above the 1.28/29 area. "Four weeks of successive losses keeps the EUR on track to test the 1.28/1.29 area (40-week/200-day MA/neckline of
the huge, multi-month inverse H&S neckline that drove our late 2012/early 2013 bullishness on the EUR)."

"Holding this support zone (we can tolerate some temporary weakness below) is vital in sustaining a longer-term bull outlook," state both analysts.

On the upside, "back through 1.3330/40 eases bear pressure," points Osborne and Moore, "we can only get bullish at this stage if spot regains 1.36s-plus. Look to sell rallies to the 1.3250 area."