EUR/USD: Easing lower, neutralising near term - Commerzbank
In view of Karen Jones, analyst at Commerzbank, EUR/USD pair should ideally start to stabilise, after it eased back to its 55 day moving average at 1.1385.
“The market last week broke above the 1.1500 resistance but has not sustained the break. Dips lower are expected to remain well supported by the 55 day ma at 1.1385 and should be contained by the near term uptrend at 1.1323. We favour a recovery to the 1.1611/23 200 day ma and mid-October high and slightly longer term we target 1.1786, the 55 week 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 1.1795 back on the cards.”