In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside could extend to the 1.1886 level.
“EUR/USD correction higher is gaining traction. It has already reached the 55 day ma at 1.1796 and there is scope for 61.8% retracement at 1.1886. Here it should struggle – the negative bias will remain intact while capped by 1.1886, beyond here it neutralises. We will maintain our downside target of the 200 day ma at 1.1304 for now but ackno3wledge that this is looking less likely. Near term dips are indicated to terminate circa 1.1765/40”.
“Additional support is offered by the mid-June high at 1.1296 and the more important 1.1110 end of May low”.
“Above the 1.1858/1.1910 area (early August and October highs) lies the 1.2092 September high”.
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