EUR/USD tests the June low at 1.1847, scope for a dive to 1.1704 – Commerzbank

EUR/USD is trading under 1.1850 as the pair probes the June low at 1.1847. According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, EUR/USD may slip towards the March low at 1.1704.

Negative bias below the 200-DMA at 1.20

“EUR/USD has again sold off and has reached the 1.1847 current June low and the 78.6% Fibonacci retracement at 1.1836/24. It is possible that this may hold the initial test.”

“The pair stays negative while it remains below the 200-day moving average at 1.2000. Further down the April 5 low sits at 1.1738 and the March low can be spotted at 1.1704.” 

“Minor resistance above the 200-day moving average comes in between the 1.2052 mid-May low and the 55-day moving average at 1.2082.”