EUR/USD could test 1.2680 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside could extend to the 1.2680 region.

Key Quotes

“EUR/USD has eroded the recent high at 1.2538 and this suggests a test of the long term downtrend at 1.2680. Nearby support lies at the 20 day ma at 1.2380 ahead of 1.2165, the 18th January low. We are cautious we note the 13 count on the 240 minute chart and the 60 minute chart and will not chase this higher at this stage. We also note the TD perfected set up on the monthly chart, the divergence of the weekly RSI both of which also suggest caution”.

“The 2017-2018 uptrend lies at 1.2011 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”.