The pair’s outlook remains negative while capped by the 1.1858/1.1910 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/USD’s outlook is negative, the market last week closed below 1.1662 the 17th August low and in doing so completed a head and shoulders top pattern 1.2092-1.1662, this measures to 1.1232 and given the close proximity of the 200 day ma at 1.1253 we will make this our downside target. The outlook remains negative while capped by the current October highs and early August high at 1.1858/1.1910, intraday rallies are indicated to terminate circa 1.1680/1.1715. Additional support is offered by the mid-June high at 1.1296 and the more important 1.1110 end of May low”.
“Above the 1.1858/1.1910 area (early August and October highs) lies the 1.2092 September high”.