EUR/USD to consolidate ahead of further falls to the 1.1602 low – Commerzbank

EUR/USD’s new low at 1.1665 has not been confirmed by the daily RSI. Therefore, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to enjoy a marginal consolidation ahead of further losses to the November 2020 low of 1.1602 initially.

Downtrend at 1.1804 to cap rallies

“EUR/USD has eroded the 1.1704 March low, however, Thursday’s low of 1.1665 was not confirmed by the daily RSI and we would allow for some minor consolidation ahead of losses to 1.1602, the November 2020 low and the 200-week ma lies at 1.1575.”

“Rallies should find decent resistance at this week's high of 1.1804 and will ideally be contained by the short-term downtrend also at 1.1804 for a negative bias to remain entrenched.”

“Below 1.1575 would introduce scope to the 1.1453 location of the previous 2008-2020 downtrend.”