Senior Technical Analyst at Commerzbank Axel Rudolph noted the pair should stay capped by the 1.2430 region for the time being.
“EUR/USD remains tightly range bound. We look for the cross to remain capped by the near term resistance line at 1.2432 and we should see it head back to the 1.2260 2017-18 uptrend line and the 1.2215 current April low. We preferably need to see a close below the 1.2155 February low to confirm a top formation”.
“Immediate downside pressure will remain in play while the cross remains below last week’s high at 1.2396”.
“Above the 2008-2018 resistance line at 1.2622 lies the 1.3190 50% retracement of the move down from 2008”.
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