EUR/USD offered below 1.2340/71 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains directly offered when trading below the 1.2340/71 band.

Key Quotes

“EUR/USD continues to weigh on the downside following its failure move to a new high. The new high has been accompanied by a divergence of the daily and weekly RSI and Fridays price action represented a key day reversal which suggests that the market is likely to remain under pressure. Intraday rallies are indicated to fail circa 1.2340, and while capped by this and the 20 day ma at 1.2371, the market will remain directly offered”.

“Nearby support is now 1.2206/1.2165, the 18th January low, this guards the 2017-2018 uptrend, which lies at 1.2044 and a close below here will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2680 would target 1.3190 the 50% retracement of the move down from 2008”.