Commerzbank: failure ahead of EUR/USD
Despite the current EUR/USD bullish move, Commerzbank traders expect the pair to reverse to the downside in the nearest future. They added another EUR/USD short from $1.3719 with a stop at $1.3835.
"There is a formidable resistance in the $1.3833/1.3940 area (recent peak, 50% retracement of the move down from 2008 and the 5-year resistance line) and we look for failure here", Commerzbank projects. "However to alleviate upside pressure a close below the uptrend at $1.3534 is now needed".
Chart. Weekly EUR/USD