EUR/USD remains bid near term – Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD remains bid near term as the market recently did not close below the 1.0989 mid-November low, and rallied sharply higher.

Key Quotes

“Attention has reverted to last week’s high at 1.1097 and this guards the 1.1180 October high and the 1.1249 channel resistance and eventually the 1.1359 200 week ma. This latter level remains the critical break point on the topside from a medium term perspective. Intraday dips are indicated to hold over 1.1050.”

“Failure at 1.0980 targets the 1.0943 78.6% retracement. This is seen as the last defence for the 1.0879 October low and the 1.0814 Fibo retracement, and if seen, we will look for signs of reversal from here.”