EUR/USD could struggle to retake 1.20 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot could find it difficult to regain the key barrier at 1.20 the figure.

Key Quotes

“EUR/USD has sold off to the 2 month uptrend, which is currently holding – this is located at 1.1814. We would allow for an initial rebound from here, but we suspect the market will now struggle to regain the 1.200 level given its robust recent rejection from the 1.2070, we are starting to believe that the market may have topped. The new high has also been accompanied by a divergence of the daily RSI. The 2 month support line guards the 4 month uptrend at 1.1698”.

“Above 1.2070 sits the 50% retracement from the move down from the 2014 high at 1.2168”.

“Failure at the five month uptrend line will trigger losses to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.