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EUR/USD is trading at around 1.1765, down -0.17% on the day, as the US dollar is correcting higher. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that RSI has diverged and expects a deep consolidation on the pair.

Key quotes

“EUR/USD last week rallied to and failed at the 1.1915 January 2018 low and last month’s high at 1.1908. There is now a large divergence of the RSI and we would allow for a deeper correction lower.”

“Initial support lies 1.1646/36 (a double Fibo) ahead of the three-month uptrend at 1.1500 and the March high at 1.1495.” 

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