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Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair should remain offered while below 1.1877.

Key Quotes

EUR/USD has eroded its 78.6% retracement at 1.1767. The market stays immediately offered below the accelerated downtrend at 1.1877. A close below 1.1767 will target 1.1717/12, the 1.1616 May 2016 high and then the 1.1553 November low with the 200 week ma at 1.1442 our ultimate goal. A negative bias will remain entrenched below the 1.1996 14th May high. There is a note of caution as we note the 13 count on the daily chart and would therefore prefer to sell the rallies”.

“The 200 day ma at 1.2021guards the 1.2092 September 2017 high and the 1.2155 March low and while capped here we maintain an immediate bearish bias”.

“Our overall bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2593″.