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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance is cautious, while a rebound is likely.

Key Quotes

EUR/USD has sold off to the December 2017 low where it is holding. It has not yet closed below its 78.6% retracement at 1.1767 and we note the 13 count, all of which suggest extreme caution and a likely rebound. The market stays immediately offered below the accelerated downtrend at 1.1853 but will have very little impact while below the 1.1996 14th May high”.

“A close below 1.1712 will target the 1.1616 May 2016 high and then the 1.1553 November low with the 200 week ma at 1.1442 our ultimate goal”.

“The 200 day ma at 1.2021 guards the 1.2092 September 2017 high and the 1.2155 March low and while capped here we maintain an immediate bearish bias”.