According to Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair could now target the 1.0950/12 area.
“EUR/USD’s rebound has remained tepid and is indicated to terminate circa 1.1065. While capped by the 1.1123 end of August low, we will consider the market as offered. We look for losses to the June and July lows at 1.0952/12. Fridays price action was an outside day to the downside and we do not think these lows will hold either. Below here we target the 1.0682 32 year support line”.
“Resistance comes in at the 1.1105/23 August, September and October 7 th lows with further resistance between the 200- and 55-day moving averages at 1.1175/82. Still more resistance can be seen along the 1.1237 resistance line”.