EUR/USD upside should be corrective only – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the current upside momentum in the pair should struggle around 1.1080.

Key Quotes

“EUR/USD has seen a strong rebound from the 1.0940 4 month support line. This is still indicated to be a correction only and should falter circa 1.1080, this will leave the near term risk on the downside.

“However signals are conflicting and yesterdays price action was a key day reversal and there is scope for the recent highs at 1.1165/87 – these maintain our negative bias short term”.

“Only below 1.0940 will target 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.