EUR/USD negative bias unchanged – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s bias remains negative for the time being.

Key Quotes

“EUR/USD has eroded the 1.2239/90 support lines to leave the market under pressure. Rallies are expected to remain tepid and capped by 1.2346/55. We maintain a negative bias following the recent divergence of the weekly RSI”.

“While capped by the 20 day ma at 1.2346, the market will remain directly offered”.

“The slide below the uptrends should trigger a move towards support at 1.2206/1.2165, the 18th January low. This guards the 2017-2018 uptrend, which lies at 1.2077 and a close below here will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2680 would target 1.3190 the 50% retracement of the move down from 2008”.