Germany IFO - Business Climate falls to 104.4 in Apr from 106.7 in Mar

Having sold off to the 50% retracement support at 1.2971, Commerzbank analysts were left on the defensive, looking for losses through the 1.2941 200 day moving average. “While we would allow for the possibility for this to hold the initial test, 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 1.2679/61 (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”, Jones wrote, suggesting initial resistance at the 55 day ma at 1.3079.