EUR/USD further upside expected on a breakout of 1.1976 – Commerzbank
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should gather extra upside traction on a break above 1.1976.
“EUR/USD has eroded key resistance offered by 1.1880/1.1910 (61.8% retracement, early August and October highs). This is impressive, but we would like to see a close above the 78.6% retracement at 1.1976 to confirm further upside intent. This is regarded as the last defence for the 1.2092 September high”.
“We will not chase this higher as we have 13 counts on the 60 and 240 minute charts and would allow for some near term consolidation and possible retracement towards its near term uptrend. It stays immediately bid above its uptrend at 1.1792”.
“Below the uptrend alleviates upside pressure – below 1.1712 the 21st November low should negate upside pressure”.