EUR/USD upside corrective still in play – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, does not rule out a re-test of the 1.1880/86 area.

Key Quotes

“EUR/USD is easing back slowly very near term but while above the 20 day ma at 1.1681 we will continue to assume a near term upside bias. The correction higher remains in force for now and is capable of testing the recent high at 1.1880 and the 61.8% retracement at 1.1886. Above the 1.1858/1.1910 area (early August and October highs) lies the 1.2092 September high”.

“Should failure at 1.1880/86 be seen then we should see the market retest the 200 day ma at 1.1327”.

“A slide back and close below the 20 day ma at 1.1685”.