EUR/USD has been consolidating near term, notes Commerzbank.
“Having broken recently below the 200 day ma at 1.3644 any rebounds are likely to remain tepid, and currently they are indicated terminate circa 1.3680. Beyond a small rebound we would allow for further losses to the 1.3476 2014 low en route to the 2012-2014 uptrend at 1.3425, CB projects.
“Please note that on the monthly chart the market has charted a key month reversal. While below 1.3740/45 the market is directly offered, and only above here would delay our outlook for a deeper retracement to 1.3838 but no more than 1.3907,” 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 1.3745.
