EUR/USD potential test of 1.1510 on the cards – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s correction lower could extend to the 1.1510 area.

Key Quotes

“EUR/USD is consolidating: The daily RSI has not confirmed the new high and Friday saw the start of a sell off, and we suspect that the 1.20 level may prove to be a bit of a psychological level. Nearby support is provided by the accelerated uptrend at 1.1672 and the 3 month uptrend at 1.1510 and while above here, there is scope for further gains. It ids not clear currently how far this slide will extend, our suspicion is to the 1.1510 uptrend”.

“Resistance above the 1.1910 recent high lies at 1.2040 the 2012 low, then 1.2170, the 50% retracement from the move down from the 2014 high”.