EUR/USD started the year in a defensive mode as the market has severed the short term uptrend, and sold off to the 55 day ma at 1.3631 and the 23.6% retracement at 1.3625, notes Commerzbank. "At the end of last year we saw the market spike towards and fail at the 2008-2014 resistance line, this is currently located at 1.3885. Coupled with the divergence of the daily RSI, we look for further weakness and we should see the market come under further pressure," CB projects. "Failure at the 1.3625 20th December low should provoke a return visit to 1.3325/1.3295 (recent low, Fibo and 200 day ma). Rebounds should now ... (full story)