EUR/USD below 1.1727 should target 1.1616/17 – Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, noted the pair could slip further on a breakdown of 1.1727.

Key Quotes

“EUR/USD’s upside correction nears the 1.1855 38.2% Fibonacci retracement. A close back below the June 8 low at 1.1727 should be enough to restore downside pressure to initially the 1.1616/17 May 2016 high. This guards the recent low at 1.1510 and the 200 week ma at 1.1417”.

“Above 1.1855 we look for a deeper retracement into the 1.1875/1.1990 band”.