EUR/USD: bearish outlook
EUR/USD is recovering after yesterday’s decline to $1.2850.
Commerzbank continues viewing the near term upside probes as corrective only and the risk, in their view, remains on the downside.
Support at lies at $1.2840/00, $1.2745 (April low) and $1.2660 (long term Fibo). There’s a talk of the ‘bearish flag’ on the daily chart confirmed by yesterday’s close below $1.2880 – bearish continuation pattern. Don’t forget about the potential ‘head and shoulders’ pattern on the weekly chart (neck line around $1.2770).
As for resistance, the levels are the same – $1.2900, $1.2935, $1.2950 and $1.2990/3000 – as they have proved to be solid obstacles for bulls. Shorts around $1.2900/35 seem like a good idea.
Chart. Daily EUR/USD