Senior Analyst at Commerzbank Axel Rudolph noted the pair now targets the 1.1510/08 band.
Key Quotes
“EUR/USD has broken down from its converging range and still targets the 1.1510/08 May and June lows. Further down sits the 50% retracement of the 2017-18 rise at 1.1448 as well as the 200 week moving average at 1.1367. The cross remains directly offered below the past couple of weeks’ highs at 1.1745/50″.
“Minor resistance below this area can be spotted at the 1.1620 late July low and along the 55 day moving average at 1.1667″.
“On the topside the key level is 1.1790, the July peak, a recovery above which would target the 38.2% Fibonacci retracement at 1.1855. Above 1.1855 we would look for a deeper retracement to the 55 week moving average at 1.1935 with scope for the 200 day moving average at 1.1976 to be touched as well. There we would suspect the cross to fail, though”.
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