EUR/USD could slip back to 1.1662 – Commerzbank

In light of the recent price action, spot could now re-visit the 1.1660 area, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has finally eroded the 5 month uptrend at 1.1875. The upmove is starting to weaken. The close below the five month uptrend line has negated the up move and should trigger losses initially to the 1.1662 August low and below here will target the mid-June high at 1.1296 and the more important 1.1110 end of May low. Intraday rallies should struggle circa 1.1927, the 20 day ma”.

“The erosion of this support line decreases the risk of an extension to the 50% retracement from the move down from the 2014 high at 1.2168 and the 1.2372 200 month ma, but if seen, that is expected to hold”.