Forex Flash: EUR/USD to aim 1.3270/56 in case of loss of 1.3480 - Commerzbank

The over-stretched move on Friday was sharply retraced yesterday: "The pullback has tested the accelerated uptrend at 1.3484 and this is starting to look exposed", wrote analyst Karen Jones. "We note the 5th of a 5th Elliott wave count on the daily chart, the 13 count on the 240 minute chart and we are wary of a deeper corrective phase", continued the Commerzbank analyst, pointing to the 1.3270/56 (16th Jan low and the 61.8% retracement) zone in a move below 1.3480.

"It is too early to say whether this was a false break above 1.3485/1.3564 and for now we will assume it is a correction lower", she added, pointing to a 3 month support line at 1.3193, but key support is the 1.3125 6 month uptrend.