EUR/USD: Market losing downside momentum - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair was rejected by 55 day ma at 1.1274 last week but continues to show little interest in the 1.1110, the May 2017 low.

Key Quotes

“For now, we are unable to rule out a retest of the 1.1110 support. Be advised however that the pattern being traced out is a potential large reversal pattern, we have divergence of the weekly RSI and a 13 count on the weekly chart as well and there is a risk of reversal.”

“Initial resistance is the 100 day ma at 1.1328 and the resistance line at 1.1353 ahead of the 200 day ma at 1.1411. Only above the 200 day ma would this imply reversal.”

“Support at 1.1110 is regarded as the break down point to 2018-2019 support line (connects the lows) at 1.1052, the 1.0963 TD support and the 1.0814/78.6% retracement.”