Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suggested the selling bias in EUR/USD is expected to persist while below 1.1058.
Key Quotes
“EUR/USD has sold off to the base of the weekly channel at 1.0899 currently. The new low of 1.0904 has not been confirmed by the daily RSI and we have 13 counts on the daily and weekly charts. Extreme caution is warranted and we would allow for this to hold the downside and provoke recovery. Failure at the base of the one year down channel at 1.0899 would put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814 on the map. The topside remains capped by the three month resistance line at 1.1058, and the market will stay offered below here”.
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