EUR/USD finished the week under pressure which reinforces the view that the market has already charted an interim top at 1.3701, says Commerzbank.
“The 20 day ma has been eroded and the focus is on the much more important 1.3503 recent low and the 1.3496 2012 -2014 uptrend . These are now vulnerable and this remains the key break down point to 1.2750. Although the 200 week ma at 1.3424 and the 1.3394 55 month ma may offer some interim supports on the way,” CB projects
“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.
In line with this view, CB maintains EUR/USD short positions from around 1.3650. CB tightens the stops on this short to 1.3685 (previously widened to 1.3745, then tightened to 1.3710). CB also narrows the target on this short from 1.3350 to 1.3505.
