EUR/USD keeps the negative stance – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair keeps the negative bias for the time being.

Key Quotes

“EUR/USD has started to erode the 20 day ma at 1.2386. Last week the market saw a minor break to a new high, which was not sustained and the new high has been accompanied by a divergence of the daily and weekly RSI. In addition Fridays price action was a key day reversal which suggests a failure move. And let us not forget that directly above the market lies the long term downtrend at 1.2680. Intraday rallies are indicated to fail circa 1.2425”.

“Nearby support is now 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”.