EUR/USD rallies could struggle near 1.1200 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional rallies in the pair are seen struggling around the 1.1200 area.

Key Quotes

“EUR/USD came under pressure on Friday following slightly stronger CPI figures and is sitting on the 200 day ma at 1.1148, which is now exposed. The market faces immediate tough resistance offered by the five month resistance line at 1.1306, which is reinforced by 1.1366 the August high. Longer term it targets the seven month support line, currently at 1.0985, and also the March low at 1.0826. Near term rallies are indicated to terminate circa 1.1200”.

“The 200 day moving average, now at 1.1148, twice acted as support recently but is still expected to eventually give way. Once slid through, the seven month support line at 1.0985 will be targeted next, together with the June and July lows at 1.0952/12”.