EUR/USD further weakness likely near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, the pair remains exposed to further downside.

Key Quotes

“EUR/USD’s rebound terminated circa 1.1215 as expected, which suggests we should see further weakness today. The 200 day ma at 1.1150 has been eroded and it sits this morning on the 1.1123 31st August low. Once slid through, the seven month support line at 1.0985 will be targeted next, together with the June and July lows at 1.0952/12”.

“The market faces immediate tough resistance offered by the five month resistance line at 1.1300, which is reinforced by 1.1366 the August high. Only an unexpected rise above here would introduce scope to 1.1416/65, the mid-April and June highs. Minor resistance below these levels sits at yesterday’s high at 1.1328”.