EUR/USD negative below 1.1858/80 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s outlook stays negative as long as it trades below the 1.1858/80 band.

Key Quotes

“EUR/USD’s outlook is negative while capped by current October highs at 1.1858/80. Last week’s low at 1.1730 is exposed. Below here key support can be seen at 1.1669/62 and failure at these August and current October lows would confirm a top formation and trigger a sell-off to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.

“Above the 1.1858/1.1910 area (early August and October highs) lies 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”.