EUR/USD now targets 1.1245 – Commerzbank

Following the recent price action, spot could now be targeting 1.1245 (200-day sma), suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has closed below 1.1662 the 17th August low and in doing so completed a top 1.2092-1.1662, this measures to 1.1232 and given the close proximity of the 200 day ma at 1.1245 we will market this our downside target. The outlook remains negative while capped by the current October highs and early August high at 1.1858/1.1910. Additional support is offered by 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”.