EUR/USD could test 1.1790 on a breakout of 1.1592/1.1619 – Commerzbank

Pablo Piovano FXStreet

The pair could retest the 1.1790 area and beyond on a break above the 1.1592/1.1619 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has sold off towards and is recovering just ahead of 1.1411, the 78.6% retracement. We will ideally see the market hold and reverse here. Note that the Elliot wave count has turned more negative. Rallies will find initial resistance at 1.1592/1.1619, the 20 and 55 day ma and only above here will allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.

“The 1.1411 level is seen as the last defence for the 1.1325 200 week ma and the 1.1301 recent low”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.