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Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair now stays capped by the resistance line at 1.1739 for the time being.

Key Quotes

EUR/USD is very much sidelined, but so far remains capped by the near term resistance line at 1.1739. For now we will assume while below 1.1790, a downside bias remains, however the market is fairly neutral currently. Attention stays on the 1.1510/08 recent lows and below here lies the 200 week ma at 1.1379″.

“The pattern being traced out on the chart is a potential descending triangle – for this to stay valid prices should remain below the resistance line – these patterns are bearish”.

“A recovery above 1.1790 will target 1.1855. Above 1.1855 we look for a deeper retracement to the 1.1937 55 week ma, with scope for the 1.1981 200 day ma, where we suspect that it will fail”.