EUR/USD upside pressure mitigated below 1.0830 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the upside bias in the pair alleviated on a close below the 200-day sma, today at 1.0830.

Key Quotes

“Euro charted a key day reversal on Monday and the new high of 1.1040 was accompanied by a divergence of the daily RSI. We would allow for a dip lower, however in order to negate upside pressure a close back below the 200 day ma at 1.0830 is required. Please note that key day reversals are often indicators of the end of a move. While above the 200 day ma however, we remain unable to rule out upside scope to the January 2015 low at 1.1098 and the 1.1146 78.6% retracement (however this is NOT favoured)”.

“Below the 200 day ma we should see losses to the 55 day moving average at 1.0724 and the 2017 support line at 1.0643”.