Merrill Lynch recently shorted EURUSD, with a target of 1.2662.

   
April 19, 2013 at 13:00 GMT

Merrill Lynch recently opened a short position of a technical nature at 1.3080, with a protective stop loss at 1.3205 and a target of 1.2662.

To justify this decision, the bank said:

"The EUR / USD corrective rally seems to be coming to an end, paving the way for a return of the downtrend to November 2012's low of 1.2662 and possibly below that. The downward momentum, which started on April 16, which has been confirmed, and which includes the break of the two-week support line, says it is time to sell. The 200-day moving average should provide a first level of support, but it will only be temporary.

Other elements complement our short bias. Indeed, the rebound correction of the Euro Stoxx 50 against the resistance line at 9 months (2 605/2 606) with the objectives set around 2440 (the low of the 4th quarter of 2012) clearly shows that the trend is downward. A Double Top pattern has been identified, revealing an objective of 2385/75 which reinforces our forecast of the EUR/USD."