EUR/USD: On the defensive – Commerzbank

Karen Jones, Analyst at Commerzbank, suggests that the EUR/USD has seen a slight erosion of the 1.1300 August and October lows and the market needs to overcome the current November high at 1.1500 to alleviate immediate downside pressure and allows for gains to 1.1581/1.1622 (2018 downtrend and 16th October high).

Key Quotes

“Support at 1.1300/1.1270 guards 1.1216 the recent low. While the 1.1216 current November low holds the downside scope for recovery remains longer term, but waning downside risk has increased!”

“Short term trend (1-3 weeks): on defensive”

“Long term trend (1-3 months): A rise above the recent high at 1.1625 would confirm a trend reversal and put the 55 week moving average at 1.1852 back on the cards.”