Forex Flash: EUR/USD downside corrective, targets 1.3270/56 - Commerzbank

The EUR/USD is under downside corrective pressure, particularly after having reacted back to the 50% retracement of the move higher seen this year (this is located at 1.3355). “We target the 1.3270/56 zone near term, which we suspect will hold the initial test. This is the 16th Jan low and the 61.8% retracement, however there is potential for a slide back to the 1.3228 3 month support line”, wrote analyst Karen Jones.

“We suspect that this is part of a bigger turn, however key support remains the 1.3164 6 month uptrend and a close below here is required to negate the up move completely”, she added, pointing to resistance for intraday rallies at 1.3580/1.3600 and initial resistance at 1.3458.