EUR/USD further downside awaits below 1.1123 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair’s downside could gather further traction on a breach of 1.1123.

Key Quotes

“EUR/USD charted an inside day, leaving the outlook unchanged. It continues to ease back from the 1.1265 resistance line and the 1.1285 15th September high, but attempts lower are pretty short lived. Only below the 1.1123 31st August low will undermine stability and trigger losses to the seven month support line at 1.0999, together with the June and July lows at 1.0952/12”.

“Above 1.1285 lies the 1.1366 August high. Only an unexpected rise above here would introduce scope to 1.1416/65, the mid-April and June highs. We are slightly biased to 1.1272/85 continuing to cap”.