EUR/USD is heading back down to the current July low at 1.3576 below which lies the much more important 1.3503 recent low and the 1.3497 2012-2014 uptrend, projects Commerzbank.
“These remain the key break down point to 1.2750. Although the 200 week ma at 1.3424 and t he 1.3394 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 projects.
“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 a short EUR/USD position from with a revised stop and a target at 1.3505.
