Forex Flash: EUR/USD to retrace into 1.3050 then 1.3111/80 - Commerzbank

FXstreet.com (Barcelona) - Since the EUR/USD has broken above its 200 day ma and 3 month downtrend and also charted a key day reversal, Commerzbank analysts decided to “go with the break higher and allow for a deeper retracement into the 1.3050 then 1.3111/80 band, where will look for signs of failure and the resumption of the down move”, wrote analyst Karen Jones, adding that intraday dips lower should now hold over 1.2850 to maintain upside corrective pressure while key support remains 1.2679/61 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “Longer term we remain negative and target the 78.6% Fibonacci retracement at 1.2400 and then 1.2042, the 2012 low”, she added.