Further recovery in EUR/USD seen on a close above 1.1176/81 – Commerzbank

In opinion of Karen Jones, Team Head FICC Technical Analysis Research, EUR/USD could re-test the 1.1240 region on a close above the 1.1176/81 area.

Key Quotes

“EUR/USD last week sold off to, tested and reversed from 1.1110/06, the April and May lows, last week. We would consider a close above 1.1176/81 (mid June low and March low) enough of a trigger to signal recovery to the 55 day ma lies 1.1242 and highs last week at 1.1285. But while capped here it will remain on the defensive”.

“Below 1.1100 will introduce scope to the 1.0974 2018-2019 support line, which in turn guards the 78.6% retracement at 1.0814/78.6% retracement”.

“Initial resistance lies at 1.1285, the 11th July high and this guards the more important 55 week ma at 1.1372”.