EUR/USD dips expected to terminate near 1.1740/20 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees occasional retracements in spot to find contention in the 1.1740/20 area.

Key Quotes

“EUR/USD correction higher remains in force. It is approaching the recent high at 1.1880 and the 61.8% retracement at 1.1886. has seen initial failure, but this has so far been tepid and the market is capable of retesting 1.1880/86, beyond here the chart neutralises (it has already negated the top pattern). Near term dips are indicated to terminate circa 1.1740/20”.

“Should failure at 1.1980/86 be seen then we should see the market retest the 200 day ma at 1.1310”.

“Above the 1.1858/1.1910 area (early August and October highs) lies the 1.2092 September high”.