EUR/USD could test 1.1812 in the longer run – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could slip back to the 1.1810 region in the long run.

Key Quotes

“EUR/USD’s sell-off has eroded the 23.6% retracement at 1.2019 and the 200 day ma at 1.2014. While we would allow for the possibility of some consolidation in this vicinity, the downside risks remain. Longer term we will allow for losses back to the 55 week ma at 1.1812. We note the divergence on the 240 minute chart and this is suggesting that we allow for a bounce to 1.2045/1.2110”.

“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”.