EUR/USD technicals warn of a potential dip – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could face a small correction lower.

Key Quotes

“EUR/USD is through the top of a 3 month channel and through its 200 week ma at 1.1788: And still the daily RSI has not confirmed the new high and we are loathe to chase this higher at this point. The move above 1.1811 introduces scope to 1.2040 the 2012 low then 1.2170, the 50% retracement from the move down from the 2014 high. We note the 13 count on the 240 minute chart and suspect a small dip lower ahead of further gains”.

“Nearby support is provided by the accelerated uptrend at 1.1608 and the 3 month uptrend at 1.1458 and while above here, there is scope for further gains”.

“Failure at the 4 month uptrend will trigger losses to 1.1296 and the more important 1.1110 end of May low”.