Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s outlook stays negative for the time being.
“The Euro has eroded the 2 month uptrend and should come under renewed downside pressure. Initial support is the 1.1135 channel followed by the 1.1070/23.6% retracement of the move higher this year and then the 55 day ma at 1.0968”.
“Rallies are likely to find initial resistance offered by the 20 day ma at 1.1211 and remain capped by 1.1300”.
“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1472, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.