EUR/USD continues to consolidate around the 200 day ma at 1.3638, notes Commerzbank.
“This has so far not provoked much of a rebound and intraday rallies are expected to terminate ahead of 1.3695. 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,” CB projects.
“While below 1.3740/70 the market is directly offered, and only above here would delay our outlook for a deeper retracement to 1.3862 but no more than 1.3920,” CB adds.
In line with this view, CB maintains a short EUR/USD position from 1.3955 with a target at 1.35, and a revised profit-stop at 1.3725.
