EUR/USD further weakness on the cards – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of further pullbacks in spot, with the initial target at the 1.1660 region.

Key Quotes

“EUR/USD’s outlook is negative following the erosion of the 5 month uptrend and the 1.1836/23 September lows and we look for further weakness to initially to the 1.1662 August low and then the midJune high at 1.1296 and the more important 1.1110 end of May low. Intraday rallies should fail ahead of 1.1820 and remain capped by 1.1908, the 20 day ma”.

“Above 1.2092 would target the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2372 200 month ma, but if seen, that is expected to hold”.