EUR/USD a test of 1.0562 is not ruled out – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, has not ruled out a visit to 1.0562.

Key Quotes

“EUR/USD sold off to and recovered from its 20 day ma at 1.0646 yesterday. We would allow for a deeper sell off towards 1.0562 (this is the bottom of the cloud). Failure here is needed to add weight to the idea that the correction higher is complete and would cast attention back to the 1.0372/40 recent lows”.

“Currently we remain unable to rule out a move to 1.0820/26 50% retracement and the top of the cloud and 1.0875 the December high, although this is looking less likely. This will make little impact on the overall bearish chart”.