Forex Flash: EUR/USD should hold the initial test of 1.2913/1.2870 – Commerzbank

FXstreet.com (Barcelona) - The interim target zone at 1.2913/1.2870 (55 week ma, 7th December low, 78.6% retracement and the 200 day ma at 1.2867) should hold the initial test, according to Commerzbank analysts. “We note the triple divergence of the daily RSI and would expect to see probes into the 1.3071 to 1.3135 resistance. This is the location of the accelerated downtrend, a Fibonacci retracement and the 8th March high”, wrote analyst Karen Jones.

“Below 1.2870 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”, she added, pointing to longer term target at 1.2400 then 1.2050/42, the 2012 low.