EUR/USD outlook remains negative – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted EUR/USD stays focused on the 1.0352/40 band for the time being.

Key Quotes

“The market has eroded last weeks low (but not closed below there!)and our focus remains on recent lows at 1.0352/40. The market is seeing a small rebound from 1.0500 and we have merely tightened our stops to protect profit at this point. It will remain directly offered below the 20 day ma at 1.0663 and the 3 month downtrend at 1.0702. Intraday rallies are indicated to hold below 1.0575”.

“The market will remain directly offered below short term downtrend at 1.0702. Above here lies 1.0820/26, which represents the 50% retracement and the top of the cloud”.