EUR/USD: Consolidating - Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD pair is consolidating at the 100 day ma at 1.1440, it remains bid in its range and they are looking for gains to the 200 day ma at 1.1559.

Key Quotes

“We would allow for minor dips to hold at 1.1390, ahead of further gains. It remains underpinned by the 2016-2019 uptrend at 1.1289. We have additional support offered by the 1.1267/70 November and December lows. Provided that the market holds here we favour a recovery to the 1.1559 200 day ma and the 1.1623 mid October high and slightly longer term we target 1.1759, the 55 week ma.”

“Failure at 1.1267 will trigger losses to the 1.1216 recent low and the 61.8% Fibonacci retracement of the 2017-18 advance at 1.1186. Please note that we continue to regard the 1.1216 recent low as an interim low for the market.”

“Long term trend (1-3 months): A rise above the recent high at 1.1623 would confirm a trend reversal and put the 55 week moving average at 1.1759 back on the cards.”