Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted there is still room for some extra recovery in the pair.
Key Quotes
“EUR/USD has eroded the 55 day ma and the short term resistance line. This has altered our short to medium term outlook as it implies that there is more scope for recovery. Nearby resistance is offered by the 1.1745/50 then 1.1790 recent highs. A recovery above here will trigger a move to the 1.1853 mid June high and the 1.1922 55 week ma. We suspect that the recent low at 1.1301 was a significant turn for the market. Initial support lies 1.1614 55 day ma and 1.1532 20 day ma and will need to drop sub 1.1508 to alleviate immediate upside pressure. Currently near term dips lower are indicated to hold around 1.1625/1.1580″.
“A drop below the 1.1508 June low would retarget the current August low at 1.1301″.
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