EUR/USD to face initial resistance at the 1.1886 mark – Commerzbank

The EUR/USD pair is upside corrective as the dollar's slide is gaining traction, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

EUR/USD is under pressure below 1.2014

“EUR/USD’s low of 1.1704 charted last week was accompanied by a divergence of the daily RSI. Coupled with the fact that we are close to the 1.1695 zone (38.2% retracement of the move seen in 2020), there is a risk that the market has charted an interim base.”

“Rallies should find initial resistance at the 200-day ma at 1.1886. This guards the more important 1.1990/1.2014 pivot.” 

“Below 1.1695 we have TD support at 1.1648 and the previous 2008- 2020 downtrend lies at 1.1570 and we are reversing ahead of here.”