EUR/USD has failed ahead of the downtrend at 1.1820 and again tested the 1.1704 March low, which has just about held on a closing basis. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to see a rebound on Wednesday before resuming its downfall towards 1.1575.
See: EUR/USD faces another battle to defend 1.1700 – SocGen
EUR/USD to slump to 1.1602 on a break below 1.1700
“Today we would allow for a minor rebound and we would look to sell the rally.”
“Below 1.1700 will see a slide to 1.1602, the November 2020 low.”
“Please note that the 200-week ma lies at 1.1575 and this remains our target.”
“The downtrend guards 1.1909, this is seen as an interim high and this guards the 200-day ma at 1.2009.”