EUR/USD to bounce higher - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that they are expecting EUR/USD to bounce higher after last week EUR/USD held over the 1.1176 recent low.

Key Quotes

“The market has recently not sustained breaks to new lows, and we favour near term recovery.”

“We suspect that it is trying to base but needs to do more work (we note the 13 count on the weekly chart). Once above the 200 day ma at 1.1457, the cross should target the 1.1570 January high, together with the 55 week ma at 1.1568.”

“Initial resistance is the 20 day ma at 1.1280.”

“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”