In light of the recent sell off, the pair’s attention has now shifted to the 1.1510 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“EUR/USD‘s upside correction has terminated at the 1.1855 38.2% Fibonacci retracement and collapsed lower. Attention reverts to the recent low at 1.1510 and the 200 week ma at 1.1416. Below 1.1415 would introduce scope to the 61.8% retracement at 1.1186. Rallies will now find the 20 day ma at 1.1702 offers initial resistance and we would expect 1.1855 to cap for a negative bias to remain entrenched”.
“Above 1.1855 we look for a deeper retracement into the 1.1960/90 band”.
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