EUR/USD negative below 1.1214/20 – Commerzbank

Pablo Piovano FXStreet

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance remain negative while below 1.1214/20.

Key Quotes

“The Euro is seeing a very minor rebound from the 1.1110 end of May low. So far this has been extremely tepid and while capped by the 20 day ma at 1.12014/20 will maintain a negative bias. Rallies will need to regain the 20 day ma at 1.1204 on a closing basis to re-focus attention on the topside and 1.1300. Below 1.1110 should trigger further losses to the 1.1070/23.6% retracement of the move higher this year and then the 55 day ma at 1.1026. Note intraday Elliot wave counts are positive and near term upside risks have increased”.

“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1467, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.

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 clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.