EUR/USD came under pressure on Wednesday. Today, markets are in consolidation mode, with EUR/USD hovering around 1.20. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees this move as a correction and expects the pair to recover the end of April high at 1.2150.
See: EUR/USD to drop to 1.19 in the next month amid inflation debate – Rabobank
Downside corrective
“We consider that near-term weakness is corrective and ideally look for it to be contained by the 55-day ma at 1.1963 and the 200-day ma at 1.1946.”
“The 50% retracement of the rally seen in April lies at 1.1927.”
“Recovery should re-target the end of April high at 1.2150.”
“Above 1.2150 we look for gains to 1.2210/43, the 78.6% retracement of the move seen this year and the February high and then 1.2349 the 2021 high.”
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