EUR/USD stays negative near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the near term outlook on EUR/USD remains negative.

Key Quotes

“The cross last week failed at its 200 day ma and has now 0scillating around its the 55 day ma at 1.0675. Rebounds from here are likely to be pretty tepid and we look for losses to the base of the short term channel at 1.0587 and please note cloud support on the daily kicks in circa 1.0625 and we suspect losses will slow. Intraday rallies are indicated to now remain capped by 1.0700/10”.

“A close above the 200 day ma at 1.0865 would put the 1.0978/50% retracement back on the agenda”.