Forex Flash: EUR/USD to test and fail at 1.3115/35 – Commerzbank

The EUR/USD rebound is now happening: “This has yet to test the 1.3115/35 accelerated downtrend and Fibonacci retracement and we continue to look for failure in this zone”, wrote analyst Karen Jones, pointing to a directly offered market while capped here and initial support at 1.2914 (55 week ma) and then 1.2885/76 – the 7th December low and 78.6% retracement.

“Our short term downside target remains to 1.2679/61, this is the 61.8% retracement of the move up from July 2012 and the November 2012 low. Longer term we target 1.2400 then 1.2050/42 the 2012 low”, she added.