EUR/USD rally facing tougher resistance – Commerzbank

Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair is currently trading back within its range as recently has not sustained a break lower.

Key Quotes

“The market is approaching tougher resistance at the 55 and 100 day ma at 1.1366/67 and we would allow for initial failure and some slippage back to the low 1.1200 region.”

“We have our doubts that the market will at this juncture retest the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186 but Intraday Elliott wave counts remain negative and the market is ranging.”

“There is now a considerable amount of resistance above the market extending up to the 200 day ma at 1.1484. Rallies will find initial resistance at 1.1366/67 the 55 and 100 day ma, which guard the 1.1420 end of February high and the 1.1422 downtrend. Below 1.1185/75 lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”