EUR/USD focus now shifted to 1.1790 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s attention appears to have shifted to the 1.1790 region.

Key Quotes

“EUR/USD has started to erode the short term downtrend. The break has not been sustained and we are unsure if this was a premature break or a false break. It is side lined and neutral. Currently attention has reverted to 1.1790, the July peak. A recovery above 1.1790 will target 1.1855. Above 1.1855 we look for a deeper retracement to the 1.1939 55 week ma, with scope for the 1.1978 200 day ma, where we suspect that it will fail”.

“The market is now bid above 1.1575 the July low. Failure here would cast attention on the 1.1510/08 recent lows and below here lies the 200 week ma at 1.1373”.