EUR/USD to suffer a deeper correction on a slide below 1.2104 – Commerzbank

The EUR/USD pair is still capable of a deeper correction as the US dollar recovers once more, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Euro unable to clear channel at 1.2215

“EUR/USD did not maintain its initial break below the 23.6% retracement at 1.2133 last week and so far has not managed to clear a tiny channel at 1.2215. We remain unable to rule out a deeper retracement.” 

“Initial resistance is the 1.2266 end of May high and this guards the 1.2349/50 2021 high.” 

“Below 1.2104 (last week's low) will trigger a deeper retracement to 1.2051 and a possible slide to the 1.1994/86 band of support (mid March highs and the 22nd April low), which will ideally hold the downside.”