In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, EUR/USD could attempt to regain the 1.1080/95 area in the very near term.
Key Quotes
“EUR/USD has managed to stabilise around the 61.8% retracement at 1.0994. Thursdays price action constituted a key day reversal and we would allow for a rebound into the 1.1080/1.1095 band very near term. This is the location of the 55 day ma and we will need to regain this for a viable retest of the 1.1180 recent high. While capped by the 55 day ma, the market is regarded as under pressure and capable of extending the decline to the next Fibonacci support at 1.0943″.
“It is possible that we will see one more final leg down to the base of the channel at 1.0865 and the 1.0814 Fibo retracement before a sustained recovery is seen”.
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