Forex Flash: EUR/USD – rally failing ahead of major resistance at 1.3150/80 – Commerzbank (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank has taken a look at EUR/USD from a purely technical perspective.

Jones begins by noting that the pair is at last showing signs of faltering as it approaches the 1.3173/80 recent high and Fibonacci retracement. She believes that this should ideally hold the topside and provoke failure. Immediate support is offered by the accelerated up trend at 1.3053. A close below which would be necessary in order to alleviate recent extreme upside pressure. She feels that failure here would target 1.2800/1.2788 and the 200MA which in turn guards the 1.2661 recent low.

Jones continues to explain that the 1.3150/80 region consists of the recent high and double Fibonacci retracement and this remains tough overhead resistance. Whilst not her core scenario, a move above would force her to neutralise her outlook as this would open the door to 1.3484/1.3519. Jones is looking to sell at market, adding to her position at 1.3125 with a stop at 1.3185.