EUR/USD stays negative, could test 1.2165 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance remains negative and could attempt a visit to 1.2165.

Key Quotes

“EUR/USD’s outlook stays negative. It has eroded 2 support lines to leave the market under pressure and sold off to its 55 day ma at 1.2183. Rallies are expected to be tepid and remain capped by 1.2329, the 20 day ma. We have a number of intraday signals to suggest that the market will see a small rebound and will cover our short positions for now. We maintain an overall negative bias following the recent divergence of the weekly RSI”.

“We look for a move towards support at 1.2206/1.2165, the 18th January low. This guards the 2017-2018 uptrend which lies at 1.2077 and a close below here will be needed to confirm the end of the move higher”.