EUR/USD dissipates upside pressure, signals a correction to 1.1646 – Commerzbank

EUR/USD is hovering under 1.1850 and Commerzbank’s Karen Jones expects a deep correction lower as RSI has diverged. Initial support awaits at 1.1646 while above 1.1915, the pair will rally towards 1.1635.

Key quotes

“EUR/USD is struggling very near-term at the 1.1915 January 2018 low and last months high at 1.1908. There is now a large divergence of the RSI and we look for a deeper correction lower.” 

“Initial support lies 1.1646/36 (a double Fibo) ahead of the March high at 1.1495. Ideally dips lower will be contained by the three-month uptrend at 1.1488.” 

“Above 1.1915/20 we will just go with it and look for further gains to 1.2635/66, the 200-month ma.”