EUR/USD has the 1.2004/14 zone in its crosshairs – Commerzbank

EUR/USD has tested and been capped by the 1.1909 July high. Nonetheless, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the pair to extend its advance towards the 1.2014 200-day moving average.

Initial support seen at 1.1820

“EUR/USD rallied higher all of last week to reach the end of July high at 1.1909. While this may see some near-term profit taking today, we favour an extension towards the 1.2004/14 August 2020 high and 200-DMA.”

“Initial support is the near-term uptrend at 1.1820 ahead of the 1.1704 March low and the 1.1664 August low.”