EUR/USD still room for a correction lower – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, there is still scope for a near term correction lower in spot.

Key Quotes

“EUR/USD has reached long term Fibonacci resistance at 1.2517/1.2600. We note that the daily and weekly RSI are diverging and the steep January support line has also been eroded but the break was not sustained. The risk of a near term correction lower remains however. Below 1.2335 lies the January 18 low at 1.2165 and, more importantly, the August and September highs at 1.2092/70”.

“Above 1.2600 will test the 2008-2018 resistance line at 1.2710”.