EUR/USD not sustaining recent breaks to new lows - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair is attempting to bounce from the 1.1176 recent low as the market has recently not sustained breaks to new lows, but there remains a risk of a slide to the 1.1110 end of May 2017 low (not our favoured scenario).

Key Quotes

“The daily RSI has diverged and this reflects a loss of downside momentum. We suspect that it is trying to base but needs to do more work (we note the 13 count on the weekly chart).”

“Once above the 200 day ma at 1.1463, the cross should target the 1.1570 January high, together with the 55 week ma at 1.1589.”

“Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”