EUR/USD: Scope for a substantial drop to 1.10 on a break below 1.1248 – Commerzbank
|EUR/USD managed to close above 1.1300 on Wednesday. The pair is currently holding the 1.1290/48 support zone, but a break below here would clear the way for a slump to the 1.10 level, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Holding support 1.1290/48
“EUR/USD has recently sold off to 1.1290 61.8% retracement of the move seen 2020-2021. We note the 13 count on the daily chart and TD support at 1.1248 and together these levels are holding so far.”
“Any bounces will find tough resistance at the 1.1635 five-month downtrend and while capped here, the overall bias is negative.”
“Initial resistance is the 1.1513/22 October low and the 5th November low and the 20-day ma at 1.1525.”
“Below 1.1248 would target 1.10, the 78.6% retracement of the move seen in 2020.”
See: EUR/USD to suffer a substantial drop to 1.1020/00 – Credit Suisse
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.