EUR/USD negative bias prevails – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s stance remains negative for the time being.

Key Quotes

“EUR/USD has reached the 1.2165 18th January low and directly below here lies the 1.2077 2017-2018 uptrend and the 1.2092 September high. As a precaution we have exited our short positions. We are not surprised to see this hold the initial test (we do not have strong enough sell signals to suggests a break is imminent). It should be noted that we maintain an overall negative bias following the recent divergence of the weekly RSI, but suspect that we will see a rebound from the 1.2092/77 region first”.

“A close below 1.2077 will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2680 would target 1.3190 the 50% retracement of the move down from 2008”.