According to Karen Jones, an analyst at Commerzbank, EUR/USD is poised to test the 1.0980 support area, having failed to clear the 5-month downtrend at 1.1113.
Key Quotes:
“EUR/USD has failed on its initial test of the 5-month downtrend at 1.1113. It is easing lower but has not taken any support of note out. Attention, therefore, remains on the topside and the downtrend guards the 1.1180 October high and the 1.1242 channel resistance and eventually the 1.1358 200-week ma. This latter level remains the critical breakpoint on the topside from a medium-term perspective. Key nearby support is the recent low at 1.0981.
Failure at 1.0980 targets the 1.0943 78.6% retracement. This is seen as the last defense for the 1.0879 October low and the 1.0814 Fibo retracement, and if seen, we will look for signs of reversal from here.”
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