EUR/USD now focused on 1.2236/79 band – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s attention remains on the 1.2236/79 area for the time being.

Key Quotes

“EUR/USD’s focus is on the 1.2236/79 support lines. The rebound from here is expected to remain tepid and is expected to remain capped by 1.2345/60. Beyond this, we should see the market continue to weigh on the downside as the recent new high has been accompanied by a divergence of the daily and weekly RSI”.

“While capped by the 20 day ma at 1.2360, the market will remain directly offered”.

“A slide below the uptrends should trigger a move towards support at 1.2206/1.2165, the 18th January low. This guards the 2017-2018 uptrend, which lies at 1.2077 and a close below here will be needed to confirm the end of the move higher”.