In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, EUR/USD's stance remains positive albeit begs some caution.
“The market remains bid and although we are cautious due to the second 13 count, and a second TD resistance at 1.1587, further gains look likely. We note that the new high has been accompanied by a divergence of the daily RSI and would allow for a retracement very near term. Nearby support is provided by the short term uptrend at 1.1351 and the high from mid June at 1.1296, and while above here, there is scope for 1.1616, the May 2016 high and then 1.1713/36 the August 2015 high and long term Fibo”.
“Failure at 1.1296 will trigger losses to the more important 1.1110 end of May low”.
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