EUR/USD still faces downside risks – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair still faces some downside risks.

Key Quotes

“EUR/USD’s sell-off has reached and exceeded the 23.6% retracement at 1.2019 and the 200 day ma at 1.2014. While it is possible that this will provoke some consolidation, the downside risks remain. Longer term we will allow for losses back to the 55 week ma at 1.1812. We note the 13 count on the 240 minute chart and this is suggesting that we allow for a bounce to 1.2080/1.2140”.

“We will maintain an immediate bearish bias below the 1.2155 February low”.

“Our overall bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2622”.