EUR/USD bearish below 1.1215 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s outlook remains bearish while below 1.1215.

Key Quotes

“EUR/USD still sidelined, but is we suspect tracing out an ‘ab-c recovery. What does this mean - very near term it is bid, but we look for the market to fail at higher levels”.

“The previous channel – now located at 1.1215, is acting as nearby resistance and maintains our negative bias. It leaves the market eyeing 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.

“Initial resistance is the channel at 1.1215 and we look for the market to fail here. Above here lies 1.1231 the 61.8% retracement of the post Brexit move”.