In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is navigating the top of the range and could lose momentum around current levels.
“EUR/USD despite the initial sell off post numbers, the market recovered remarkably well and shot higher. It is possible that the formation on the daily chart is a converging range and we are now at the top of the range and should fail. Nearby support lies at 1.2165, the 18th January low, ahead of the August and September highs at 1.2092/70. Resistance lies at 1.2488/1.2538 (resistance line and recent high)”.
“The market recently failed at long term Fibonacci resistance at 1.2517/38 and we believe that following a divergence of the weekly RSI that the market has topped. The 2017-2018 uptrend lies at 1.2011 and a close below here will confirm the end of the move higher”.
“Above 1.2538 the recent high will test the 2008- 2018 resistance line at 1.2680”.
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