EUR-USD october 2 2012 will test support at 1.2674

forex trading outlook today - EUR-USD october 2 2012 will test support at 1.2674  : The EUR/USD performed an almost 70-pip trading day today so far, from 1.2880 low just ahead of the European session on the concerning rising unemployment in Spain to 1.2949 high just ahead of the ISM New York in the US. The American data increased its expansionary pace from 51.4 to 52.9 in September, following the ISM manufacturing improvement on Monday.

However, the classic "buy ahead, sell the news" triggered profit taking from part of market participants, softening the pair down to 1.2926 (+0.30% on the day). The EUR/USD is resuming its rebound seen on Monday after finding support just above 1.2800.

Commerzbank analysts favor the scenario in which the market fails at 1.2960/1.3000 tougher resistance and turns back to test the trendline support currently at 1.2674. "This is our favored scenario, but at this point should a recovery through 1.3050 be seen we will have to allow for a retest of 1.3173/77", wrote analyst Karen Jones.

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