EUR/USD is consolidating – Commerzbank

Karen Jones, analyst at Commerzbank, notes that EUR/USD pair has held steady yesterday but has yet to regain the 55 day ma at 1.1049, this implies further consolidation is a possibility.

Key Quotes

“Near term dips should ideally be contained by 1.0940 and given that the market has recently reversed from the base of the weekly channel at 1.0892, we view the market as a base. We then look for recovery to initially the mid September high at 1.1110. A close above here would trigger another leg higher to the 200 day ma at 1.1213.”

“Longer term the critical resistance to overcome is the top of the one year channel at 1.1396 and the 200 week ma at 1.1353.”

“Below 1.0879 we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”