EUR/USD negative below 1.1172 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s outlook remains negative while below 1.1172.

Key Quotes

“EUR/USD’s correction higher has extended towards and is showing signs of failure at the previous channel – now located at 1.1172. While capped here, we continue to view this as a strong negative signal”.

“It leaves the market on the road to 1.0821, the March low, and then the base of the second channel at 1.0564. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0600 30 year support line”.

“Initial resistance is the channel at 1.1172 and we look for the market to fail here. Above here lies 1.1231 the 61.8% retracement of the post Brexit move”.