EUR/USD failed at cloud resistance – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that EUR/USD sold off back into its wedge, failing at the cloud resistance, and looking pressurised.

Key Quotes

“EUR/USD sold off back into its wedge and looks to be back under pressure. It has reversed just ahead of cloud resistance at 1.2555 and the 5 month downtrend at 1.2595. Attention has reverted very quickly to 1.2247/32 the recent low and 200 month ma.”

“Above 1.2595 initial resistance lies 1.2600/14, the recent high and October 10 and 23 lows. Key resistance above here is regarded as 1.2740/70, the lows for 2013 and late October high.”

“Note longer term we look for a break below 1.2232 to initially the 1.2042 2012 low and beyond.”

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