EUR/USD is on the defensive – Commerzbank

Karen Jones, analyst at Commerzbank, points out that EUR/USD is sitting just above some strong supports offered by the base of the weekly channel at 1.0899 currently.

Key Quotes

“We have 13 counts on the daily and weekly charts, together with TD support at 1.0850. Extreme caution is warranted and we would allow for this to hold the downside and provoke recovery. Just below here we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017- 2018 advance at 1.0814.”

“The topside remains capped by the three month resistance line at 1.1047, and the market will have to overcome this in order to alleviate downside pressure.”

“Only a daily chart close above the mid September high at 1.1110 would confirm a bottoming formation and put the 200 day ma at 1.1240 back on the cards. For now the market is on the defensive.”