EUR/USD has sold off to the 200 day ma at 1.3634, and while this has provoked some consolidation it is not expected to hold, notes Commerzbank.
“Further losses to are then expected to 1.3476, 2014 low en route to the 2012-2014 uptrend at 1.3397,” Commerzbank projects.
“While below 1.3740/70 the market is directly offered, above here would delay our outlook for a deeper retracement to 1.386 2 but no more than 1.3920,” Commerzbank adds.
In line with this view, Commerzbank maintains a short EUR/USD position from 1.3955 with a target at 1.35. Commerzbank keeps re-trailing the stops on this short to stand now at 1.3740.
