EUR/USD capped around 1.0936/65 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, gains in EUR/USD remain limited by the 1.0936/65 area for the time being.

Key Quotes

“Euro has eased back a bit. We have a 5 month downtrend, now at 1.0936, this continues to cap, we note that the 55 week ma at 1.0929 is also found here, together with a TD perfected set up on the daily chart, we are alert to the idea of failure here. This leaves the 200 day moving average at 1.0833 still in focus”.

“Below the 200 day ma we should see losses to the 55 day moving average at 1.0698 and the 2017 support line at 1.0630. Failure at nearby Fibonacci support at 1.0555 should be enough to trigger weakness to the 1.0494 February low, then the 1.0340 January low. Our bias remains toppish”.