EUR/USD further rangebound likely – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair could extend its sideline theme in the near term.

Key Quotes

“EUR/USD has crept higher but is essentially sidelined, the market faces immediate tough resistance offered by the five month resistance line at 1.1309, which is reinforced by 1.1366 the August high. Longer term it targets the seven month support line, currently at 1.0983, and also the March low at 1.0826. Near term further ranging looks likely”.

“The 200 day moving average, now at 1.1147, twice acted as support recently but is still expected to eventually give way. Once slid through, the seven month support line at 1.0980 will be targeted next, together with the June and July lows at 1.0952/12”.