EUR/USD attention returns to 1.0505 – Commerzbank

In light of yesterday’s price action, spot could now re-focus on recent lows at 1.0505, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD briefly spiked up to 1.0875, this looks exhaustive price action and a slide back below the 20 day ma at 1.0665 has been seen, this should be enough to focus attention on 1.0505 and 1.0467, the recent low and the March low. This remains a major break down point to parity”.

“Above 1.0875 would initiate a deeper retracement to 1.0910 then 1.1000 (this is not favoured) and while it would be enough to delay our bearish outlook, it is would not be enough to negate it”.