EUR/USD remains well supported - Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD remains within its range after last week it saw an emphatic rejection from the 1.1500 resistance.

Key Quotes

“Dips lower are expected to remain well supported by the 1.1300 - 1.1267 end of November low and we favour an eventual retest of the 1.1500 region. The market faces tough overhead resistance in the 1.1500 zone but upside risks are growing longer term and a close above here (preferably a weekly close) would trigger a recovery to the 1.1623 October high and the 1.1640 200 day ma.”

“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.”

“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 1.1804 back on the cards.”