EUR/USD could test 1.1785 in the longer-run – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could slip back to the 1.1780 region in the longer run.

Key Quotes

“EUR/USD has traded through and closed below the 1.2155 February low. It has sold off to 1.2092, the September 2017 low, which we would allow to hold the initial test –below this lies the 200 day ma at 1.2010. Longer term we will allow for losses back to the 55 week ma at 1.1785”.

“Intraday rallies are indicated to remain capped by the 1.2265/1.2210 resistance. The near term resistance line lies at 1.2409 and while below here it remains negative. We continue to regard the 1.2566 recent high as an interim top”.

“Our bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2622”.