Forex Flash: EUR/USD needs a break below 55-day MA to confirm trend reversal lower – Commerzbank

FXstreet.com (Barcelona) - The EUR/USD was held by its two month support line at 1.3047 last week, having previously been rejected by hefty resistance at 1.3225/43 (50% retracement and Wednesday’s high). Commerzbank analysts believe that a break back below the short term uptrend at 1.3047 should still be seen in the near future but a fall through the 55 day moving average at 1.3027 is still needed to confirm a trend reversal lower, though. “In this case the 1.2977/54 support area (24th April low and the 200 day ma) will be in focus”, wrote analyst Karen Jones, adding that failure here will concentrate efforts on to 1.2839 (78.6% retracement of the move up in April, then the 1.2740 recent low), while resistance comes in between the mid-April high at 1.3202, the four month resistance line at 1.3221 and the April peak at 1.3243.