EUR/USD to advance nicely towards 1.2150, correction is over – Commerzbank

EUR/USD has bounced off near-term support at 1.1994/89. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to enjoy a strong rebound to retest the end of April high at 1.2150.

See: EUR/USD to drop to 1.19 in the next month amid inflation debate – Rabobank

EUR/USD to alleviate upside pressure below 1.1927

“EUR/USD has sold off to and seen a strong rebound from the 1.1994/89 band of support, these are the mid-March highs and the 22nd April low – it is a near term pivot.” 

“We suspect that the correction is over and look for the market to re-target the end of April high at 1.2150.” 

“Dips should be contained by the 55-day ma at 1.1964 and the 200-day ma at 1.1948. The 50% retracement of the rally seen in April lies at 1.1927.” 

“Above 1.2150 we look for gains to 1.2210/43, the 78.6% retracement of the move seen this year and the February high and then 1.2349 the 2021 high.”