EUR/USD: Strong rebound - Commerzbank
Karen Jones, analyst at Commerzbank, explains that the EUR/USD rally has stalled at last week’s high at 1.1443 after it saw a strong rebound from the November low at 1.1267.
“This guards the 2018 downtrend at 1.1503. Currently we suspect that the market is ranging. Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”
“A close above the November high at 1.1500 and the 1.1503 downtrend will be needed to negate downside pressure and signal a recovery to the 1.1623 October high and the 1.1695 200 day ma.”
“Long term trend (1-3 months): A rise above the recent high at 1.1625 would confirm a trend reversal and put the 55 week moving average at 1.1836 back on the cards.”