EUR/USD erodes the four-month uptrend at 1.1826, scope for 1.1495 – Commerzbank

EUR/USD severs its four-month uptrend at 1.1826 as the pair trades to 1.1770, down -0.40% on the day. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees potential for a drop to the 1.1495 March high. 

Key quotes

“EUR/USD has eroded the four-month uptrend at 1.1826. It suggests that we will see a deeper retracement. Initial support is the 55-day ma at 1.1702 and the 2 August low at 1.1695. There is potential for the March high at 1.1495.” 

“Intraday rallies are indicated to fail 1.1785/1.1805 and while below 1.1917 a downside corrective stance will now be maintained. This guards the 1.2014/15 region.”