EUR/USD could test 1.1318 near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair might attempt a test of 1.1318 ahead of another leg lower.

Key Quotes

“EUR/USD will shortly encounter the the 2014-2015 resistance line at 1.1318 and we are looking for this to hold and provoke failure. A slide back below the 1.1057/75 20 and 200 day moving averages, should be enough to alleviate immediate upside pressure and retarget the 1.0946 4 month uptrend”.

“Only below 1.0946 will target 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.