Flash: EUR/USD still holding cloud support - Commerzbank

FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that EUR/USD continues to sit on cloud support at 1.3564/50.

Key Quotes

The market continues to hold here and has seen a small rebound. There is a lot of divergence of the 240 minute RSI and near term we would allow for a rebound. Rebounds should now struggle 1.3630/60 and be contained by 1.3740.”

“Failure here will leave the 1.3494 4 month support line exposed. We favour further losses to 1.3332/1.3295 (recent low, Fibo and 200 day ma). Initial support is the 1.3525 low from early December.”

“At the end of last year we saw the market spike towards and fail at the 2008-2014 resistance line, this is currently located at 1.3885. Coupled with the divergence of the daily and weekly RSI, we look for further weakness.”

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