EUR/USD managed to rise above 1.17 on Tuesday and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair is executing a return to point of break out. The upmove should fade at the 1.18 downtrend and a fall to the 1.1495 is likely. 

Key quotes

“EUR/USD is seeing a small rebound. We suspect that it is executing a return to point of break out from a top. In which case we should see the rally struggle 1.1755/67 and remain contained by the short-term downtrend at 1.1800. We should then see renewed weakness towards 1.1523, the 38.2% retracement and then the March high at 1.1495 (this is also the measurement down from the top).”

“There is an outside chance that losses could extend to the 200-day ma at 1.1245, but that is not our favoured scenario.”

“The short-term downtrend guards 1.1870/1.1971 and only above here will re-target the 1.2014/15 region.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0400 on soft EU inflation data

EUR/USD stays below 1.0400 on soft EU inflation data

EUR/USD clings to modest daily gains above 1.0350 during the European trading hours. Eurostat reported that annual Core HICP remained steady at 5% in the Eurozone in November as expected. Investors await key data releases from the US and Powell's speech.

EUR/USD News

GBP/USD recovers from 1.1940 as US Dollar refreshes day’s low, Fed Powell’s speech eyed

GBP/USD recovers from 1.1940 as US Dollar refreshes day’s low, Fed Powell’s speech eyed

GBP/USD has sensed responsive buying action around 1.1940 as risk aversion loses luster. The Bank of England is expected to advance its interest rates to 4.25% in Q1CY2023. GBP/USD has gained strength after testing the 200-EMA around 1.1960.

GBPUSD News

Gold bulls seek validation from $1,760 and Fed Chair Powell

Gold bulls seek validation from $1,760 and Fed Chair Powell

Gold price remains firmer for the second consecutive day, bounces off 10-DMA, short-term key support. Fed Powell’s first speech after November, hawkish hopes tease Gold sellers.

Gold News

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.

Read more

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it Premium

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it

ADP's jobs report has finally come in line with the official NFP report. It took a hiatus and a change in formula to make that happen, but what matters is that this release finally matters. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures