EUR/USD still negative near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the near term outlook on the pair remains negative.

Key Quotes

“The Euro sold off to and saw a strong recovery off the 20 day ma at 1.0857 on Friday. The rally is indicated to terminate circa 1.0935 (cloud resistance on the 240minute chart is 1.0945/67) and for now we will maintain a negative bias”.

“In order to negate upside pressure a close back below the 200 day ma at 1.0826 is required. Please note we suspect that the market has recently topped following the recent key day reversal. However while above the 200 day ma, we remain unable to rule out upside scope to the January 2015 low at 1.1098 and the 1.1146 78.6% retracement (however this is NOT favoured)”.