EUR/USD: Struggling to overcome resistance - Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD pair is struggling to overcome resistance and remains capped by 55 day ma at 1.1265.

Key Quotes

“For now, we are unable to rule out a retest of the 1.1110 support, but, if seen, we look for this to hold. Be advised that the pattern being traced out is a potential large reversal pattern.”

“We have divergence of the weekly RSI and a 13 count on the weekly chart as well and hence there is a risk of bullish reversal. Initial resistance is the 100 day ma at 1.1322 and the resistance line at 1.1344 ahead of the 200 day ma at 1.1404. Only above the 200 day ma would this imply a bullish reversal.”

“Support at 1.1110 is regarded as the break down point to 2018-2019 support line (connects the lows) at 1.1052, the 1.0963 TD support and the 1.0814/78.6% retracement.”