Commerzbank’s overall negative view for EUR/USD is entrenched.
“We suspect intraday rallies will remain capped by 1.3734/40 for further losses. We should then see the currency pair should slide back towards the 200 day moving average at 1.3630 and then the 1 .3476 2014 low en route to the 2012-2014 uptrend at 1.3397,” CB projects.
“While below 1.3820 there will be no impact on the c hart and above here would allow for a deeper retracement to 1.3862 but no more than 1.3920,” CB adds.
In line with this view, CB holds a short EUR/USD as a trade recommendation from 1.3955 with a target at 1.35. CB trailed the stop on this short to 1.3865.
