EUR/USD: Easing lower very near term – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that EUR/USD pair is easing lower very near term towards the 55 day ma at 1.1044 and the 50% retracement at 1.1030 and they look for the market to recover from this vicinity.

Key Quotes

“It should then challenge the 200 day ma at 1.1190 and the top of the channel at 1.1276. We would allow for a minor retracement, dips lower are indicated to hold over 1.1073 and 1.1044 (55 day ma).”

“The 55 week ma offers additional resistance at 1.1243. Longer term the critical resistance to overcome is the 200 week ma at 1.1357 and while we would allow for this zone of resistance to hold the initial test, longer term we look for a break higher to feature. This will target 1.1520/70, the 2019 high, as a minimum.”

“Below 1.0879 we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”