EUR/USD faces strong resistance around 1.1200 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the area around 1.1200 remains a strong resistance for occasional bullish attempts.

Key Quotes

“EUR/USD’s rally higher has held the initial test of resistance at 1.1123, the August and September lows and has eased back from here. Between here and approximately 1.1020 the market should hold and recover. Above 1.1123/26 lies the 1.1200 6 month resistance line and the top of the cloud at 1.1217. This should hold and provoke failure. Dips lower will find that the 20 day ma at 1.0995 offers initial support ahead of 1.0950 and the 1.0821 March low”.

“Should a close be seen above the 1.1203/17 downtrend (this will also be above the 200 day ma and the 55 day ma as well) this would negate downside pressure and initiate gains towards the 1.1366 August 2016 high”.