EUR/USD scope for a test of 1.0816 – Commerzbank

In light of yesterday’s price action, spot could now attempt a test of 1.0816, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD interesting price action yesterday – the market has failed to sustain a minor break of the November 2015 low at 1.0523, and has spiked higher – this is exhaustive price action and there is clearly a reluctance to break below the March 2015 low at 1.0457 quite yet – this is the break down point to parity”.

“The 23.6% retracement at 1.0700/02 has been eroded and this should now act as support. The break above here has introduced scope to the 38.2% retracement at 1.0816. Adding to the weight of resistance here - the March low can be seen at 1.0821 and the October low at 1.0851, our negative bias remains entrenched below here. Above here would initiate a deeper retracement to 1.0910 then 1.1000”.