EUR/USD a test of 1.2538/56 loses traction – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested a test of the 1.2538/56 band has not been ruled out, although it seems to have lost some momentum.

Key Quotes

“EUR/USD last week did not maintain the break above the early March high at 1.2447 and eased back into its previous range. This has neutralised our outlook. We remain unable to rule out a retest of the January and February highs at 1.2538/56 and the long term downtrend at 1.2622, but this is looking less likely”.

“We would allow for a slide to the 1.2240 20th March low”.

“This is made up of the mid-January and current March lows and the 2017-2018 uptrend. A weekly close below here would add weight to the idea that the market recently topped at 1.2556”.