EUR/USD upside expected to fail above 1.1200 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside momentum could run out of steam above the 1.1200 handle.

Key Quotes

“EUR/USD’s rally higher is looking pretty directional and has reached the resistance at 1.1123, the August and September lows and above here lies the 1.1203 6 month resistance line and the top of the cloud at 1.1217. This should hold and provoke failure. Dips lower will find that the 20 day ma at 1.1000 offers initial support ahead of 1.0950 and the 1.0821 March low. Currently intraday dips are indicated to hold over 1.1060”.

“Should a close be seen above the 1.1203/17 downtrend (this will also be above the 200 day ma and the 55 day ma as well) this would negate downside pressure and initiate gains towards the 1.1366 August 2016 high”.