EUR/USD further gains need to surpass 1.1201 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside needs to extend beyond 1.1201 in order to allow for extra gains.

Key Quotes

“The Euro continues to hover around the base of its channel, but it’s lack of follow through has neutralised the chart. Rallies will need to regain the 20 day ma at 1.1201 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”.