Karen Jones, analyst at Commerzbank, points out that the EUR/USD is continuing to grind lower and they would expect to see the market stabilise shortly and recover, however it is possible that this could extend to the low 1.13 region.
Key Quotes
“We then look for gains to the 200 day ma at 1.1547. The market remains underpinned by the 2016-2019 uptrend at 1.1307.”
“We have additional support offered by the 1.1267/70 November and December lows. Provided that the market holds here we favour a recovery to the 1.1550 200 day ma and the 1.1623 mid October high and slightly longer term we target 1.1745, the 55 week ma.”
“Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”
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