EUR/USD: On the defensive - Commerzbank

Karen Jones, analyst at Commerzbank, notes that EUR/USD pair continues to sit just above 1.1110/06, the April and May lows and suggest that they would consider a close above 1.1176/81 (mid-June low and March low) enough of a trigger to signal recovery to the 55 day ma at 1.1240 and the highs from last week at 1.1285.

Key Quotes

“While capped here it will remain on the defensive. Below 1.1100 will introduce scope to the 1.0974 2018-2019 support line, which in turn guards the 78.6% retracement at 1.0814/78.6% retracement. Initial resistance lies at 1.1285, the 11th July high and this guards the more important 55 week ma at 1.1372.”

“The market will need to regain the 55 week ma at 1.1372 to generate upside interest.”