EUR/USD bid above 1.1296 – Commerzbank

The bid tone around the pair should stay unchanged while above 1.1295/96, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The Euro is under pinned very near term by the May high circa 1.1296 and the short term uptrend at 1.1295. While above here, the market remains bid and has started to erode the two year resistance line at 1.1464. However with the second 13 count evident on the daily chart, and TD resistance at 1.1521, and non confirmation of the daily RSI, we remain wary of failure and at this stage will not chase this higher. The market will find immediate support at the 1.1295 4 month uptrend and this guards the more important 1.1110 end of May low”.

“A weekly close above 1.1462 sees the market break higher from its long term range. Above 1.1462 will target 1.1616, the May 2016 high and then 1.1713/36 the August 2015 high and long term Fibo”.