FXstreet.com (Barcelona) - Having bounced from the 200-day moving average, at 1.2825, the rebound has managed to neutralize the technical indicators, but Commerzbank analysts expect an eventual drop: “We continue to look for rallies to remain tepid and remain capped by 1.3072”, wrote analyst Karen Jones, expecting the 3-month uptrend, at 1.2776, to come under attack, and even risking a selloff towards 1.2605 and 1.2472 (50% and 61.8% retracements of the move seen since July).

“While above 1.2776 we remain unable to rule out a re-challenge of 1.3072 and possibly the 1.3173/77 band (recent high and the Fibonacci retracement/78.6% retracement of the move seen this year), however
continue to favour failure there”, Jones added.