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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair keeps the negative bias for the time being.

Key Quotes

EUR/USD came under increasing downside pressure yesterday, keeping our negative bias entrenched. We recently saw the markets upside correction terminate at the 1.1855 38.2% Fibonacci retracement and the market collapse lower. Attention has reverted to the recent low at 1.1510 and the 200 week ma at 1.1407, we would expect this to hold the initial test. 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 offers 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”.