EUR/USD rebounds seen capped around 1.2345 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested that bullish attempts in spot should stay capped around 1.2345.

Key Quotes

“EUR/USD is finding some nearby support at the 1.2232/57 support lines. The rebound from here is expected to remain tepid and is expected to remain capped by 1.2345. Beyond this, we should see the market continue to weigh on the downside following its recent failure move to a new high. The new high has been accompanied by a divergence of the daily and weekly RSI”.

“While capped by the 20 day ma at 1.2367, the market will remain directly offered”.

“Nearby support below the uptrends is now 1.2206/1.2165, the 18th January low, this guards the 2017-2018 uptrend, which lies at 1.2044 and a close below here will be needed to confirm the end of the move higher”.