EUR/USD: Topside remains capped – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that EUR/USD pair is starting to weigh on support offered by the 1.0927/26 recent lows.

Key Quotes

“The topside remains capped by the April and May lows as well as the three month resistance line at 1.1068, 1.1110. Failure at 1.0927/26 would target the base of the one year down channel at 1.0905 and put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814 on the map.”

“Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1244 back on the cards. For now the market is on the defensive.”