EUR/USD still on the defensive – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair is still focused on the 1.1430 region.

Key Quotes

“EUR/USD remains on the defensive following its recent failure at the 20 day ma at 1.1528 and attention is on the early October low at 1.1433. The rebound from here has so far been pretty tepid and the market remains under near term downside pressure having failed recently at Fibo resistance at 1.1624. We look for losses to 1.1411/15, the 78.6% retracement and 2017-2018 support line. There is scope for a retest of the 1.1319 200 week ma and 1.1301 recent low. This is expected to hold the downside”.

“Only above 1.1625 will neutralise the chart again and allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.