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Karen Jones, analyst at Commerzbank, suggests that the EUR/USD continues to rebound from 1.1110, the May 2017 low as the new low has not been confirmed by the daily RSI and has bounced to the 20 day ma at 1.1234.

Key Quotes

“While capped here the market remains directly offered and above will suggest further short covering. Be advised that the pattern being traced out is a potential large reversal pattern, we have divergence of the weekly RSI and a 13 count on the weekly chart as well and there is a risk of reversal.”

“Support at 1.1110 is regarded as the break down point to 2018-2019 support line (connects the lows) at 1.1059, the 1.0963 TD support and the 1.0814/78.6% retracement.”

“Initial resistance is the 100 day ma at 1.1332 and the resistance line at 1.1362 ahead of the 200 day ma at 1.1418. Only above the 200 day ma would this imply reversal.”