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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair keeps the negative bias and looks to 1.1510 and 1.1407.

Key Quotes

EUR/USD remains on the defensive and our negative bias remains entrenched. We recently saw the market’s upside correction terminate at the 1.1855 38.2% Fibonacci retracement and the cross collapse lower. Attention remains on the recent low at 1.1510 and the 200 week ma at 1.1407. We would expect this to hold the initial test and provoke some profit taking. Below 1.1400 would introduce scope to the 61.8% retracement at 1.1186. Rallies will now find the 20 day ma at 1.1680 offer initial resistance and we would expect 1.1855 to cap for a negative bias to remain entrenched”.

“Above 1.1855 we look for a deeper retracement into the 1.1960/90 band”.