EUR/USD: Short-term consolidation? - Commerzbank
Axel Rudolph, analysts at Commerzbank, explains that the EUR/USD cross has reached the 55 day moving average at 1.1251 which capped and they continue to favour the topside even though short-term further consolidation below the current May high at 1.1264 is seen.
Key Quotes
“Failure at the 1.1177 March low on a daily chart closing basis would put the 1.1110 April low back on the map. Be advised that the pattern being traced out is a potential large bullish reversal pattern.”
“We have positive divergence on the weekly RSI and a Tom DeMark 13 count on the weekly chart. Overhead lie the 55- and 100-day moving averages at 1.1251 and 1.1313 as well as the September-to-May resistance line at 1.1333. Further up meanders the 200 day moving average at 1.1395.”
“Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1099 and the 1.0814 78.6% Fibonacci retracement.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
