Forex Flash: EUR/USD to eventually see failure below 1.2945 toward 1.2839 – Commerzbank

FXstreet.com (Barcelona) - Having sold off towards and bounced just ahead of the 1.2945 200 day MA, Commerzbank analysts would allow for the possibility for this to hold the initial test, but “we should then see failure and a slide to 1.2839, the 78.6% retracement of the move up in April. This is the last defense for the 1.2740 recent low”, wrote analyst Karen Jones, pointing to key support at 1.2679/6 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “We continue to view the recent failure ahead of the 1.3225/50% retracement as an interim peak”, she added, suggesting initial resistance at the 55 day ma at 1.3064 and then the 1.3142 resistance line.