EUR/USD scope for recover, resistance at 1.0821/51 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, noted the likeliness of a rebound in light of the positive divergence in the RSI.

Key Quotes

“Last week EUR/USD slipped through the 1 1/2-, 17- and 32- year uptrend lines at 1.0682/14, to 1.0518, close to the November 2015 low at 1.0523, before recovering at the end of last week. Between it and the March 2015 low at 1.0457 we continue to expect the currency pair to stabilize short term, especially since positive divergence can be seen on the daily RSI”.

“Below the 1.0457 March 2015 low lies parity”.

“Initial resistance at the 1.0658 November 22 high is currently in focus. Further up the March low can be seen at 1.0821 and the October low at 1.0851. Expect to see more of a recovery bounce over the next few days”.