In light of the recent sell off, Senior Analyst at Commerzbank Axel Rudolph assessed the prospects for the pair.
Key Quotes
“EUR/USD not only slipped through the November 2016 high and August 2018 low at 1.1301/00 but also briefly dipped below the long-term pivot line at 1.1258. This is bearish price action and means that the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186 is next in line. Failure there will put the late May and June 2017 lows at 1.1119/10 on the cards”.
“Immediate downside pressure will be maintained while below the 1.1300/01 zone. Further resistance comes in along the downtrend channel resistance line at 1.1460 and also at the 1.1432 early October low. While the cross remains below the current November high at 1.1500 we will retain a medium-term bearish outlook”.
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