EUR/USD is consolidating - Commerzbank

In view of Karen Jones, analyst at Commerzbank, EUR/USD pair has been consolidating following its break of the 2018- 2019 downtrend and is holding below the 200 week ma at 1.1347 and the 200 day ma at 1.1362.

Key Quotes

“Yesterday’s price action was an outside day to the downside and further consolidation looks likely. To really ignite upside interest, we suspect a close above here is needed to target initially the 1.1570 2019 high. Dips lower are indicated to hold at 1.1255/30 and will ideally be contained by 1.1175. We regard recent lows at 1.1110/06 as an interim turning point.”

“Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1027 and the 1.0814 78.6% Fibonacci retracement.”