EUR/USD’s rejection of price from the 55 day ma at 1.3693 has been quite emphatic which reinforces the view that the market has topped here at 1.3701, notes Commerzbank.
“The 20 day ma at 1.3605 should offer only minor support en route to the much more important 1.3503 recent low and the 1.3482 2012 -2014 uptrend. This remains the key break down point to 1.2750,”CB projects.
“Although the 200 week ma at 1.3420 and the 1.3395 55 month ma may offer some interim supports on the way. Only above 1.3701 will alleviate immediate downside pressure for a deeper retracement to 1.3807 (61.8% retracement),” CB adds.
“We will attempt to trade from the short side while below here. Our longer term view remains bearish,” CB advises.
