EUR/USD outlook is now neutral – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s stance has shifted to neutral.

Key Quotes

“The Euro continues to hover around channel, it’s lack of follow through has neutralised the chart. Rallies will need to regain the 20 day ma at 1.1203 to re--focus attention on the topside and 1.1300. Below 1.1119 (the low this week) should trigger further losses to the 1.1070/23.6% retracement of the move higher this year and then the 55 day ma at 1.1005”.

“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1472, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.