EUR/USD on the defensive below 1.1720 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair risks further pullbacks while below 1.1720.

Key Quotes

“EUR/USD has seen an initial rejection from at the previous 23.6% retracement at 1.1723. It currently looks to be on the defensive while below the 1.1720 resistance line. It will need to recover above here for another shot at the recent high at 1.1853/55.Currently risks are on the downside”.

“Medium to longer term we continue to target the 200 week ma at 1.1400. We would expect this to hold the initial test and provoke some profit taking. Below 1.1400 would introduce scope to the 61.8% retracement at 1.1186”.