EUR/USD has rallied higher and attention has reverted to the 200-day ma and its current May high at 1.1012/19, as Commerzbank’s Karen Jones notes. OCBC Bank is looking for this level to cap gains.
“Dips should find initial support at 1.0870 ahead of the short-term uptrend at 1.0804. Provided this holds, the market should recover to re-tackle the 200-day ma at 1.1012.”
“A close above the 1.1012 200-day ma (favoured) is needed to regenerate upside interest to the 1.1240 December peak and beyond. Note that we have a confirmed buy signal on the DMI Index and now look for a move higher.”