EUR/USD allows for profit taking ahead of the 1.1495 March high – Commerzbank

EUR/USD jumped to fresh multi-month highs on Tuesday after the European Union reached a historical deal on the €750 billion coronavirus recovery fund. The pair is nearing the March peak at 1.1495, however, analysts at Commerzbank like the idea to take profits here. 

Key quotes

“EUR/USD is approaching the March high at 1.1495. This represents quite formidable resistance and given the 13 count on the daily chart we will take the opportunity to cover our long positions for now. We are alert to the idea of some profit taking here.” 

“Ideally dips lower will be contained by the two-month uptrend at 1.1336, but while above 1.1168 the overall picture will remain bullish.”

“However, a break higher is eventually favoured and would target the 2019 high at 1.1570, then 1.1815/33. This is the 61.8% Fibonacci retracement of the move down from the 2018 peak, a 12-year resistance line and the September 2018 high. This is highly likely to hold the initial test.”