EUR/USD: 2016-19 uptrend holds on a closing basis - Commerzbank

Karen Jones, analyst at Commerzbank, points out that last week we saw EUR/USD sell off to the 2016-2019 uptrend currently lies at 1.1289 and saw a minor erosion which was not sustained.

Key Quotes

“We have additional support offered by the 1.1267/70 November and December lows. Provided that the market holds here we favour a recovery to the 1.1573 200 day ma and the 1.1623 mid October high and slightly longer term we target 1.1759, the 55 week ma. Near term rallies will need to regain the 1.1448 100 day ma to refocus on the topside. Supports at 1.1267 and at 1.1216 are expected to hold.”

“Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”