EUR/USD recent up move bears caution – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, EUR/USD could grind lower and find initial support in the 1.1330 area.

Key Quotes

“The new high at 1.1490 has been accompanied by a divergence of the daily RSI. This together with a 13 count and a TD resistance of 1.1521 all point to extreme caution and we suspect that it will slide lower. Nearby support is provided by the short term uptrend at 1.1328 and the high from mid June at 1.1296. Failure here will trigger losses to the more important 1.1110 end of May low”.

“A weekly close just above 1.1462 has been seen but we will need to see some follow through and close above the 1.1521 TD resistance. Above here will target 1.1616, the May 2016 high and then 1.1713/36 the August 2015 high and long term Fibo”.