EUR/USD in a consolidative mode – Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair navigating within a consolidative theme for the time being.
“EUR/USD is consolidating, the new low has not been confirmed by the daily RSI and there remains a TD perfected set up on the daily – both suggest a loss of downside momentum, but currently no rebound has been seen. Ideally rebounds will struggle to regain 1.1660/90. We remain immediately bearish while capped here”.
“The market has recently completed a head and shoulders top pattern and a bear flag pattern – this is very negative price action. The measurement down from the head and shoulders top pattern 1.2092- 1.1662, is 1.1232. Given the close proximity of the 200 day ma at 1.1284 we will make this our downside target”.
“The outlook remains negative while capped by the current October highs and early August high at 1.1858/1.1910. Additional support is offered by the mid-June high at 1.1296 and the more important 1.1110 end of May low”.