EUR/USD to plunge towards 1.10 on a break below 1.1350 – Commerzbank

EUR/USD has sold off to 1.1366 (previous long-term downtrend). Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the world’s most popular currency pair to dive as low as 1.10.  

Euro sells-off further

“EUR/USD has sold off to 1.1366, previous downtrend (from 2008). We note the 13 count on the daily chart and this would suggest extreme caution. TD support is not found until 1.1248 however.” 

“Any bounces will find tough resistance at the 1.1645 five-month downtrend and while capped here the overall bias is negative.”

“Initial resistance is the 1.1513/22 October low and the 5th November low and the 20-day ma at 1.1560.”

“Below 1.1350 would target 1.1290 then 1.10, the 61.8% and 78.6% retracement of the move seen in 2020.”