EUR/USD to extend its downside and nosedive to the 1.1575 mark – Commerzbank

EUR/USD is trading listlessly above 1.1700, fresh five-month lows. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects some very near-term profit taking in the dollar. But in the long run, the pair is set to plunge to the 200-week moving average at 1.1575.

Attention is on the 1.1704 2021 low

“EUR/USD peaked last week at 1.1909, and continues to weigh on the downside.”

“The sell-off has virtually reached the March low at 1.1704, we note the 13 counts on the intraday charts and would allow for this to hold the initial test. Below here will see a slide to 1.1602, the November 2020 low.”

“Please note that the 200-week ma lies at 1.1575 and this remains our target.”

“Last week's high at 1.1909 is seen as an interim high and this guards the 200-day ma at 1.2010/11.” 

“Initial resistance is the 1.1860 resistance line.”