EUR/USD: Near term weakness – Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD charted an outside day to the downside yesterday and looks set to consolidate recent gains.

Key Quotes

“The market sits at a critical juncture – namely the 55 week ma at 1.1202 and the 2019-2020 down channel at 1.1221 and we are not surprised to see consolidation here. With dips lower well supported by the 55 and 20 day ma at 1.1094/1.1063 we look for the market to hold here and recover. Above the 1.1240 recent high lies the 200 week ma at 1.1360, and this represents a critical break point on the topside from a medium term perspective.”

“Dips lower will ideally hold over the 1.1066 20th December low but this is reinforced by the 1.1040 3 month support line and while above here our outlook stays positive. Failure at 1.1038 would target the 1.0981 29th November low.”