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Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair lost some downside momentum following yesterday’s price action.

Key Quotes

EUR/USD has retested the 1.1510 May low. This has held the initial test and the market has charted a key day reversal. The daily RSI did not confirm the new low and there is a loss of downside momentum, we will exit our short positions for now”.

“We view the recent high at 1.1853 as an interim peak and look for losses to 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”.