EUR/USD surged to 1.1547, an 18-month high, and now targets the 2019 peak at 1.1570. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the pair struggling here.
Key quotes
“EUR/USD is at new highs for the year as it has taken out the March high at 1.1495 and is now approaching the 1.1570 2019 high and the 1.1596 50% retracement of the move down from 2018.”
“Given the 13 count on the daily chart caution is warranted, in fact all our signals continue to say it will struggle here. Ideally dips lower will be contained by the two-month uptrend at 1.1348.”
“Above 1.1596 targets 1.1815/33. This is the 61.8% Fibonacci retracement of the move down from the 2018 peak, a 12-year resistance line and the September 2018 high. This is highly likely to hold the initial test.”
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