EUR/USD sets new July low at 1.1772, next stop on the downside at 1.1704 – Commerzbank

EUR/USD weighs on the 2020-2021 support line at 1.1777. Below 1.1762/38, the pair will target the March lows at 1.1704, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

EUR/USD slid to a new July low at 1.1772

“EUR/USD so far slid to the 2020-2021 support line at 1.1777 which is being tested while positive divergence can still be seen on the daily RSI.” 

“On the daily chart, rallies are indicated to be corrective only and should struggle around 1.1880/1.1945.”

“The pair will need to regain the 200-day moving average at 1.2006 to reassert upside interest.”

“Below the current July low at 1.1772 sit the 1.1762/38 March 25 and April 5 lows and also the March trough at 1.1704.”