EUR/USD could slip back to 1.2165 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could drop to the 1.2160 region if it clears lows in 1.2335.

Key Quotes

“EUR/USD is easing back from long term Fibonacci resistance at 1.2517/1.2600 and we believe that following a divergence of the weekly and daily RSI that the market may have topped. Below 1.2335 (last weeks low) should be enough to trigger a sell off to the January 18 low at 1.2165 and, more importantly, the August and September highs at 1.2092/70”.

“Above 1.2600 will test the 2008-2018 resistance line at 1.2680”.