EUR/USD near term outlook appears deteriorated – Commerzbank

In view of Karen Jones, further losses in the pair should materialize on a close below the 1.0830 area (200-day sma).

Key Quotes

“Euro charted a key day reversal yesterday and the new high of 1.1040 was accompanied by a divergence of the daily RSI. We would allow for a dip lower, however in order to negative upside pressure a close back below the 200 day ma at 1.0830 is required. Please note that key day reversals are often indicators of the end of a move. While above the 200 day ma, we remain unable to rule out upside scope to the January 2015 low at 1.1098 and the 1.1146 78.6% retracement”.

“Below the 200 day ma we should see losses to the 55 day moving average at 1.0719 and the 2017 support line at 1.0640”.