Forex Flash: EUR/USD to resume drop below 1.3000 and 1.2930 towards 1.2740 and 1.2679/61 - Commerzbank

FXstreet.com (Barcelona) - The EUR/USD has recently failed ahead of the 1.3225/50% retracement and charted a small inside day yesterday. “Current indications remain that the market will remain capped here (Elliott wave count and TD perfection set-up) and we look for the resumption of the down move”, wrote analyst Karen Jones, adding that the market has found some support at 1.3000/1.2995 and “this guards the 200 day ma at 1.2930 en route to the 1.2740 recent low”, while key support remains 1.2679/61 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “Above 1.3225 will indicate a deeper retracement to 1.3340 and possibly 1.3503 (not favored)”, she concluded.