Senior Analyst at Commerzbank Axel Rudolph noted the pair risks further downside in the near term.
Key Quotes
“EUR/USD bounced back to the 1.1346 November 5 low as expected but should soon head lower again. Below the November 2016 high and August 2018 low at 1.1300/01 still beckons the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Failure there will put the late May and June 2017 lows at 1.1119/10 on the cards”.
“Resistance above yesterday’s high at 1.1348 comes in at the 1.1432 early October low as well as along the downtrend channel resistance line at 1.1450. While the cross remains below the current November high at 1.1500 we will retain a medium-term bearish outlook”.
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