EUR/USD: Buy the dips circa 1.2165 - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the EUR/USD pair is likely to extend its consolidative move, as the bulls gather pace for a test of the monthly 200-SMA of 1.2432.

Key Quotes:

“EUR/USD’s new high has not been confirmed by the daily RSI and Tuesday we charted a key day reversal, the market is consolidating. We would allow for a small consolidation currently this is indicated to terminate circa 1.2165. Beyond this, the market remains on course to challenge the 1.2432 200 month ma.”

“Support should be offered by the 1.2092 September high and the 20-day moving average at 1.2052 – the market will remain immediately bid above here.“

“Below 1.2052 will trigger losses to the 1.1901 uptrend.”