The EUR/USD pair is still capable of a deeper correction as the US dollar recovers once more, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Euro unable to clear channel at 1.2215
“EUR/USD did not maintain its initial break below the 23.6% retracement at 1.2133 last week and so far has not managed to clear a tiny channel at 1.2215. We remain unable to rule out a deeper retracement.”
“Initial resistance is the 1.2266 end of May high and this guards the 1.2349/50 2021 high.”
“Below 1.2104 (last week’s low) will trigger a deeper retracement to 1.2051 and a possible slide to the 1.1994/86 band of support (mid March highs and the 22nd April low), which will ideally hold the downside.”
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