EUR/USD still room for a test of 1.2168 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, there is scope for the pair to test the 1.2170 area.

Key Quotes

“EUR/USD continues to hold over the 5 month uptrend at 1.1863. While this holds we remain unable to rule out an extension to the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2372 200 month ma, but if seen, that is expected to hold. However it should be noted that we consider this to be the end phase of the bull trend. It should also be noted that we consider the chance of a trend break as high”.

“Failure at the five month uptrend line will negate the up move and trigger losses initially to the 1.1662 August low and the mid-June high at 1.1296 and the more important 1.1110 end of May low”.