EUR/USD could drop and test 1.1258 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could drop further and test the 1.1258 level.

Key Quotes

“EUR/USD last week failed to maintain the break of the 6 week downtrend and starts this week back on the defensive. This is negative price action and it is likely that we will see a retest of the 1.1301/00 recent low and there is scope for the pivot line at 1.1258. Near term rallies are likely to remain thwarted by 1.1380/1.1447. Resistance at 1.1500 guards the mid-October high at 1.1623”.

“Only above 1.1625 will neutralise the chart further and allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.