EUR/USD should find support around 1.2285 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair faces near term contention at 1.2285.

Key Quotes

“EUR/USD charted a key day reversal last week and on Friday saw a rally back to the 20 day ma at 1.2323. The market has bounced just ahead of the 1.2110 2017-2018 uptrend and the 1.2092 September high. It should be noted that we now have a market stuck between a one year uptrend and a 10 year downtrend. This may provoke some sharp swings while the market works out if this is the end of EUR/USD strength or not. I am slightly biased to failure, but I am not married to the view. Near term dips should hold around 1.2285”.

“A close below 1.2110 will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2651 would target 1.3190 the 50% retracement of the move down from 2008”.