EUR/USD positive near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair’s outlook stays positive in the short term.

Key Quotes

“The Euro last week completed its consolidation phase and the market is well placed to test the 1.1300 November 2016 high, however we suspect that this may hold the initial test as we note the large divergence of the daily RSI, which reflects a loss of upside momentum. It will remain bid while above the near term uptrend at 1.1062”.

“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1474, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.