EUR/USD remains capped by 1.2420 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested spot stays capped by the 1.2420 area for the time being.

Key Quotes

“EUR/USD sold off in its range on Friday and hit our take profit/near term target. It has eroded the 1.2272 2017-2018 uptrend, which is regarded as negative. But we suspect that in order to really generate some downside interest that we will need to see a close below the 1.2215 April low and the 1.2155 February low. We look for the cross to remain capped by the near term resistance line at 1.2420 and maintain a negative stance below here”.

“Above 1.2420 lies the March highs at 1.2447/76”.

“Our bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2622”.