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In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, EUR/USD could attempt a corrective downside to the 1.1050 area and probably 1.1000 in the short-term horizon.

Key Quotes

“The EUR/USD is showing signs of initial failure at the top of the 14 month down channel at 1.1182 and the 1.1240 December high. We would allow for a correction back to 1.1050 and possibly 1.1000 near term. Below here dips will find some support at 1.0926, the 3 rd September low and the 1.0879 the October low, but key support remains the 20 year uptrend at 1.0763.”

“Above 1.1240 lies the 1.1300 55 month ma and the 200 week ma at 1.1346. This is critical from a longer term perspective, a weekly close above here would target the 12 year downtrend at 1.1950.”