EUR/USD still capped around 1.1858/80 – Commerzbank

Senior Analyst at Commerzbank Axel Rudolph noted the pair should stay focused on 1.1730 as long as recent highs in the 1.1858/90 band cap the upside.

Key Quotes

“EUR/USD’s recent decline has taken it to last week’s low at 1.1730 before the cross began to rise again. Last week it was rejected by the 55 day ma at 1.1841. While the slightly higher 1.1858/80 recent highs cap, the 1.1730 low will remain in focus. Below 1.1730 key support can be seen at 1.1669/62. Failure at these August and current October lows would push the late July low at 1.1613 to the fore and also confirm a top formation. Such a move would trigger a sell-off to the midJune high at 1.1296 and the more important 1.1110 end of May low”.

“Above the 1.1858/80 area lie the 1.1880/1.1910 early August and current October highs. The 1.1910 level guards the 1.2092 September high”.

“Above 1.2092 would target the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2383 200 month ma, but if seen, that is expected to hold”.