Forex Flash: EUR/USD aims the downside, directly offered while capped by 1.3135/57 - Commerzbank

The EUR/USD failed at the 23.6% retracement of the last leg lower, and Commerzbank analysts point to initial support at 1.2914 (55 week ma) and 1.2885/76 – the 7th December low and 78.6% retracement. “These represent the next key supports and break down points”, wrote analyst Karen Jones. “We would allow for some profit taking here ahead of a slide to our short term downside target, which remains to 1.2679/61, this is the 61.8% retracement of the move up from July 2012 and the November 2012 low”, she added, pointing to longer term target at 1.2400 then 1.2050/42, the 2012 low. “The market remains directly offered short term while capped by 1.3135/57 (accelerated down trend)”, she concluded.