EUR/USD still capped by 1.1880 – Commerzbank

Senior Analyst at Commerzbank Axel Rudolph noted the pair is expected to keep the trade below the 1.1880 area for the time being.

Key Quotes

“EUR/USD’s rebound from the 1.1669/62 August and current October lows is taking a breather below last week’s high at 1.1880. While we would allow for an extension to the August 2 high at 1.1910 to be seen, we believe that it would struggle there. This level guards the 1.2092 September high”.

“We would treat a break below the 1.1662 August low as the completion of a top formation. Such a move would trigger a sell-off to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.

“Above 1.2092 would target the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2383 200 month ma, but if seen, that is expected to hold”.