Commerzbank sells EUR/USD
Commerzbank has finally sold EUR/USD at $1.3175 with a stop at $1.3280 (no target yet placed on this call). Strategists are prepared to add to this short at $1.3280.
They expect the pair to reverse ahead of the 78.6% Fibonacci retracement (around $1.3275). “Dips are currently indicated to hold very near term in the $1.2985/40 band. Loss of this zone is needed to re-target the $1.2755/40 recent low and April low," analysts say.
"While further chopping around within the $1.2940-1.3275 limits is likely we look for the more important resistance at $1.3373/1.3415 to hold. This is where the 2011-2013 downtrend, the 200-week MA and the June high meet. While capped here, an overall downside bias will persist," they add.
Chart. Daily EUR/USD