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EUR/USD is trading above 1.18 yet off the highs. The pair is allowing for consolidation in the short-term, therefore, Commerzbank’s Karen Jones has reduced her short positions. The 1.1646 mark holds the downside while above 1.1915 EUR/USD would look for the 1.2635 200-month ma.

Key quotes

“EUR/USD continues to recover near-term and this has been enough to neutralise the downside corrective state. The best I can say is that the market is holding sideways at the moment and as a consequence we will reduce our short position.” 

“Dips are expected to remain well supported by both the 1.1646/36 (a double Fibo) and the three-month uptrend at 1.1546. This trend line is reinforced by the March high at 1.1495.” 

“Above 1.1915/20 we will just go with the up move and look for further gains to 1.2635/66, the 200-month ma.”