In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s negative stance remains intact while below 1.1996.
“EUR/USD has sold off to its 78.6% retracement at 1.1767, this has held the initial test and we would allow for deeper rebound towards the accelerated downtrend at 1.1900 and possibly 1.2000. A close below 1.1767 will target 1.1717/12, the 1.1616 May 2016 high and then the 1.1553 November low. An immediate negative bias will remain entrenched below the 1.1996 14th May high”.
“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”.