EUR/USD gains capped above 1.1400 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional gains in the pair would remain limited to the 1.1415/95 area.

Key Quotes

“EUR/USD last week rallied to and saw failure at initial failure at resistance offered by 1.1415/20, the 61.8% retracement - between here and resistance at 1.1465/95 (early April 2016 high and the October 2015 high) we look for the market to remain capped”.

“Provided it does fail here we should see a retest of the critical 1.1111/1.1058 support. This is the 200 day ma, the 55 week ma, the December high, the March 16 low and the short term uptrend”.

“Ideally intraday rallies will find immediate resistance 1.1285. Initial support lies at 1.1216, the 25th April low. The 1.1058 support is expected to act as the break down point to the second channel at 1.0564”.