EUR/USD rebounds capped by 1.2345/65 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, rallies in spot are expected to be limited around 1.2345/65.

Key Quotes

“EUR/USD finished the week sitting on nearby support offered by the 1.2268/34 support lines. The rebound from here is expected to remain tepid and is expected to remain capped by 1.2345/65. Beyond this, we should see the market continue to weigh on the downside as the recent new high has been accompanied by a divergence of the daily and weekly RSI”.

“While capped by the 20 day ma at 1.2364, the market will remain directly offered”.

“A slide below the uptrends should trigger a move towards support at 1.2206/1.2165, the 18th January low. This guards the 2017-2018 uptrend, which lies at 1.2077 and a close below here will be needed to confirm the end of the move higher”.