EUR/USD rallies seen capped around 1.0710/15 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bullish attempts in EUR/USD are seen struggling around 1.0710/15.

Key Quotes

“The cross last week failed at its 200 day ma and sold off to its the 55 day ma at 1.0674, where it is consolidating. Rebounds from here are likely to be pretty tepid and we look for losses to the base of the short term channel at 1.0583 and please note cloud support on the daily kicks in circa 1.0625 and we suspect losses will slow. Intraday rallies are indicated to now remain capped by 1.0710/15”.

“A close above the 200 day ma would put the 1.0978/50% retracement back on the agenda”.