In light of the recent performance of the pair, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the upside pressure should be mitigated below 1.1508.
Key Quotes
“EUR/USD‘s bounce off the November 2016 high at 1.1300 has reached the 4 month downtrend at 1.1602. There is scope for an extension to the 55 day ma at 1.1625. The market will need to drop sub 1.1508 to alleviate immediate topside pressure. Upside risks are growing”.
“Should a drop and daily chart close below the 1.1300/1.1296 November 2016 and mid-June 2017 highs be seen, however, we will assume resumption of the down move and the 61.8% Fibonacci retracement of the 2017-18 rise at 1.1187 would be targeted”.
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