Forex Flash: EUR/USD bearish while capped by 1.3006/1.3107 - Commerzbank

FXstreet.com (Barcelona) - Back to the 200 day moving average at 1.2879 and this week’s low at 1.2844, the EUR/USD remains range bound: “As long as the latter holds the minor psychological 1.3000 level may still be reached in the days to come”, wrote analyst Karen Jones, expecting this, the two month downtrend channel re-sistance line at 1.3006 and the 1.3107 Friday high to cap on a daily New York closing basis, however. “While this is the case we will retain our medium term bearish forecast”, she added.

In regard to the downside, below 1.2844 the EUR/USD will look into 1.2679/61 (61.8% Fibonacci retracement of the July-to-January rise and the November 2012 low). “Longer term we target the 78.6% Fibonacci retracement at 1.2400 and then 1.2042, the 2012 low”, Jones wrote.