EUR/USD: Capped at 1.1085 – Commerzbank

The definition of a bear trend according to Dow Theory is for lower reaction highs and lower reaction lows, that defines the past 11 years for the EUR/USD pair according to analysts at Commerzbank.

Key quotes

“EUR/USD remains in a 11 year down move and to add to its woes it has recently eroded a 35 year up channel to leave the focus on the 1.0340 2017 low.”

“While there is no denying that the market is currently on the defensive – and will remain so short term while capped by 200-day ma at 1.1085.”

“Further weakness is likely to find support initially at 1.0457, March 2015 low and the 1.03402017 low.”