EUR/USD could still re-test 1.1662 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance remains negative and could slip back towards the 1.1660 region.

Key Quotes

“EUR/USD’s outlook remains negative following the recent erosion of the 5 month uptrend and the 1.1836/23 late August and September lows. Intraday rallies are indicated to fail circa 1.1833/55. We look for further weakness initially to the 1.1662 August low and then the midJune high at 1.1296 and the more important 1.1110 end of May low. Very near term the market is still bouncing off the 200 week ma at 1.1718 but this recovery should soon fizzle out”.

“Above 1.2092 would target the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2372 200 month ma, but if seen, that is expected to hold”.