EUR/USD keeps targeting 1.1272 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s next target is still the 200-day sma around 1.1270.

Key Quotes

“EUR/USD’s head and shoulders top has been followed by a bear flag pattern – this is very negative price action. The measurement down from the head and shoulders top pattern 1.2092-1.1662, is 1.1232. Given the close proximity of the 200 day ma at 1.1272 we will make this our downside target”.

“The outlook remains negative while capped by the current October highs and early August high at 1.1858/1.1910, intraday rallies are indicated to terminate circa 1.1680/1.1715. 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”.