EUR/USD rallies seen faltering around 1.2385 – Commerzbank

Pablo Piovano FXStreet

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes occasional bullish attempts should meet resistance around 1.2385.

Key Quotes

“EUR/USD as we suspected the erosion of the 20 day ma triggered another sell off. Last week the market saw a minor break to a new high, which was not sustained and the new high has been accompanied by a divergence of the daily and weekly RSI. In addition Fridays price action was a key day reversal which suggests a failure move. Intraday rallies are indicated to fail circa 1.2385, we may see a tiny rebound intraday as the 60 minute RSI has diverged”.

“Nearby support is now 1.2206/1.2165, the 18th January low, this guards the 2017-2018 uptrend, which lies at 1.2044 and a close below here will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2680 would target 1.3190 the 50% retracement of the move down from 2008”.

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.

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