EUR/USD negative stance near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s near term outlook stays negative.

Key Quotes

“Euro continues to grind lower following the markets recent key day reversal on Monday and divergence of the daily RSI. We would allow for a dip lower, however in order to negate upside pressure a close back below the 200 day ma at 1.0827 is required. Please note that key day reversals are often indicators of the end of a move. While above the 200 day ma however, we remain unable to rule out upside scope to the January 2015 low at 1.1098 and the 1.1146 78.6% retracement (however this is NOT favoured)”.

“Below the 200 day ma we should see losses to the 55 day moving average at 1.0729 and the 2017 support line at 1.0647”.