EUR/USD: Downtrend broken – Commerzbank
|According to Axel Rudolph, analyst at Commerzbank, EUR/USD has not only broken through the five month downtrend line at 1.1105 but also risen above the 200 day moving average at 1.1154 to its current December high at 1.1200.
Key Quotes
“Next up are the 55 week moving average at 1.1212 and theAugust peak at 1.1249. Further up meanders the 200 week moving average at 1.1358 which remains in focus for the weeks to come. It represents a critical break point on the topside from a medium term perspective.”
“Support comes in at the 200 day moving average at 1.1154 and also at the 1.1116 December 4 as well as the 1.1097 November 21 highs. Further support is seen at the December 6 low at 1.1040.”
“Failure at 1.0981 would target the 78.6% Fibonacci retracement at 1.0943. This is seen as the last defence for the 1.0879 October low. If revisited, we would look for signs of reversal from there.”
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