EUR/USD to climb towards 200-DMA at 1.1906 on a break above the 1.1706 downtrend – Commerzbank

EUR/USD is about to challenge its downtrend at 1.1706. Above here, the pair will target the 200-day moving average (DMA) at 1.1906, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports. 

Poised to challenge the four-month downtrend

“EUR/USD has shot higher and will shortly encounter the 55-DMA at 1.1700 and the 1.1706 four-month downtrend, which we suspect may hold for now.”

“A move above 1.1706 (resistance line) is needed to alleviate immediate downside pressure and would allow for a retest of the 1.1906 200-DMA.”