EUR/USD cautious, rebound likely – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance is cautious, while a rebound is likely.

Key Quotes

“EUR/USD has sold off to the December 2017 low where it is holding. It has not yet closed below its 78.6% retracement at 1.1767 and we note the 13 count, all of which suggest extreme caution and a likely rebound. The market stays immediately offered below the accelerated downtrend at 1.1853 but will have very little impact while below the 1.1996 14th May high”.

“A close below 1.1712 will target the 1.1616 May 2016 high and then the 1.1553 November low with the 200 week ma at 1.1442 our ultimate goal”.

“The 200 day ma at 1.2021 guards the 1.2092 September 2017 high and the 1.2155 March low and while capped here we maintain an immediate bearish bias”.