EUR/USD: Side-lined for now - Commerzbank

Axel Rudolph, analyst at Commerzbank, suggests that the EUR/USD pair remains below the 55 day moving average at 1.1247 but may soon retest it and rise above it.

Key Quotes

“Only failure at the 1.1177 March low on a daily chart closing basis would put the 1.1110 April low back on the map. Be advised that the pattern being traced out is a potential large bullish reversal pattern.”

“We have positive divergence on the weekly RSI and a Tom DeMark 13 count on the weekly chart. Overhead lie the 55- and 100-day moving averages at 1.1247 and 1.1310 as well as the September-to-May resistance line at 1.1327.”

“Further up meanders the 200 day moving average at 1.1394.”

“Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1097 and the 1.0814 78.6% Fibonacci retracement.”