EUR/USD could extend the recovery to 1.1165/87 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could attempt a new visit of the 1.1165/87 band.

Key Quotes

“EUR/USD has seen a strong rebound from the 1.0941 4 month support line. The price action on Wednesday was a key day reversal and there is scope for a retest of the recent highs at 1.1165/87 – these maintain our negative bias short term”.

“Only below 1.0941 will target 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.

“Initial resistance are the recent highs at 1.1165/87 and we look for the market to fail here. Above here lies 1.1264 the 50% retracement of the move down from May”.