EUR/USD still seen corrective – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair remains within a corrective phase and could still test the 1.1875/1.1990 band.

Key Quotes

“No change. EUR/USD’s upside correction is approaching the 1.1855 Fibonacci retracement. A close back below the 20 day ma at 1.1725 should be enough to restore downside pressure to initially the 1.1616/17 May 2016 high. This guards the recent low at 1.1510 and 1.1417 the 200 week ma”.

“Above 1.1855 we look for a deeper retracement into the 1.1875/1.1990 band”.

“Below 1.1415 would introduce scope to the 61.8% retracement at 1.1186”.