Search ForexCrunch

Karen Jones, analyst at Commerzbank, suggests that EUR/USD has seen a slight erosion of the base of its down channel at 1.0941 BUT has not closed below there.

Key Quotes

“We have a 13 count on the weekly chart plus the weekly RSI has not confirmed the new low so caution is warranted. Below here lies the 78.6% retracement at 1.0814. We also have a 13 count on the 240 minute chart, but the rebound is indicated to be likely to halt circa 1.1027, the 1st August low.”

“Nearby resistance is the near term downtrend at 1.1153 and the 200 day ma at 1.1271, but key resistance is 1.1328/51, the 2018-2019 down channel and the 55 week ma. A weekly close above this latter level is needed to negate downside pressure.”

“The market will need to regain the 55 week ma and channel at 1.1328/51 to generate upside interest.”