EUR/USD consolidative near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is poised for further consolidation in the short term.

Key Quotes

“The Euro is approaching the 1.1300 November high and we note the TD perfected set up. We may see/would allow for some consolidation/retracement just below this level. While dips lower hold over the near term uptrend at 1.0970, the market stays immediately bid”.

“The market has potential to reach the highs from mid 2016 circa 1.1400, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.

“Below the uptrend will signal a slide to the 200 day ma at 1.0826 and failure here is needed to negate upside pressure”.