Forex Flash: EUR/USD might rebound to 1.3100/80 before heading lower - Commerzbank

FXstreet.com (Barcelona) - A tepid rebound should still allow a possible move to 1.3100/80 “before we head lower, but our propensity is to sell ahead of here”, according to Commerzbank analysts. “We have a number of resistances converging around circa 1.3037/50 – the 23.6% retracement. All of which suggest that the market has resumed its down trend”, wrote analyst Karen Jones, pointing to the erosion of the 200 day moving average and a slide to 1.2679/61 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “Still longer term we target the 78.6% Fibonacci retracement at 1.2400 and then 1.2042, the 2012 low”, she added.