EUR/USD could try a pullback ahead of further gains – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, a retracement is not ruled out ahead of extra upside.

Key Quotes

“EUR/USD is through the top of a 3 month channel and through its 200 week ma at 1.1788: And still the daily RSI has not confirmed the new high and we are loathe to chase this higher at this point. The move above 1.1811 introduces scope to 1.1876, the June 2010 low and 1.2040 the 2012 low then 1.2170, the 50% retracement from the move down from the 2014 high. We note the 13 count on the 240 minute chart and suspect a small dip lower ahead of further gains”.

“Nearby support is provided by the accelerated uptrend at 1.1593 and the 3 month uptrend at 1.1447 and while above here, there is scope for further gains”.