EUR/USD probable test of 1.2019 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair could attempt a visit to the 1.2020 region.

Key Quotes

“EUR/USD last week sold off to and recovered from the 55 week moving average currently at 1.1851. It is correcting higher near term. The rally has already reached the 23.6% retracement at 1.1962 and there is scope for a move to the 200 day ma at 1.2019 and the 38.2% retracement at 1.2050/70. We would expect this to cap the topside and longer term we will stay negative. Beyond this we look for a slide to the May 2016 high at 1.1616 and the 1.1553 November 2017 low”.

“Our overall bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2593”.