EUR/USD spent the latter part of the week testing the 200 day ma at 1.3637, notes Commerzbank.
“The market has seen some minor consolidation here but this has not provoked a rebound and this morning is trading below here. It is not expected to hold here and we look for further losses to the 1.3476 2014 low en route to the 2012-2014 uptrend at 1.3410,” Commerzbank projects.
“While below 1.3770 the market is directly offered, above here would delay our outlook for a deeper retracement to 1.3862 but no more than 1.3920. Intraday rallies are expected to terminate ahead of 1.3795,” 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 1.3715.
