In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside could extend to the 1.1910/25 band.
“EUR/USD continues to see a rebound from the 1.1662 August low. Initial resistance at 1.1833, the end of September high and 20 and 55 day moving averages have been eroded and we would allow for an extension to the 1.1910/25 resistance line and 2 nd August high, where we think it will struggle, this guards the 1.2092 high”.
“We would treat a break below 1.1660 as the trigger for a sell off to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.
“Above 1.2092 would target the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2372 200 month ma, but if seen, that is expected to hold”.
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