EUR/USD upside seen as corrective only – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s upside should be only corrective, with strong resistance around 1.0820/26

Key Quotes

“EUR/USD has rallied to and so far stalled at 1.0820/26, the 50% retracement and the top of the cloud, this together with 1.0875 the December high represents much tougher resistance for the market and we note that while the market has seen a strong rally it is not enough to restore the up move and this is still indicated to be corrective only”.

“The market is finding support at the 20 day ma at 1.0675 and we suspect will need to go below the base of the cloud at 1.0520 to negate the current push higher”.