EUR/USD now eyes a test of 1.0999 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair’s downside could extend to 1.0999.

Key Quotes

“EUR/USD has started to erode the 1.1123 31st August low – this undermines stability and should trigger losses to the seven month support line at 1.0999, together with the June and July lows at 1.0952/12. We do have a small time zone gap at 1.1146, and would allow for this to be filled ahead of further weakness”.

“Resistance lies at the 1.1262 resistance line and the 1.1285 15th September high, and while capped here we are negative. Above 1.1285 lies the 1.1366 August high. Only an unexpected rise above here would introduce scope to 1.1416/65, the mid-April and June highs”.