EUR/USD: Scope for a slump to the 1.1395 mark – Commerzbank

EUR/USD has reached the 200-week ma and 55-month ma at 1.1575/60. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to sink towards the 1.1395 level.

EUR/USD has sold-off to its long-term moving averages

“EUR/USD has continued its descent to reach the 200-week ma at 1.1575, please note the 55-month ma is also found here at 1.1560 and we would allow for some profit taking in this vicinity.”

“Next key support of note is going to be the previous downtrend (from 2008) which is now at 1.1395.”

“Intraday rallies will find an accelerated downtrend at 1.1717, but key nearby resistance is the 1.1807 three-month downtrend.”