Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, noted the pair remains offered while below 1.1123.
“EUR/USD has not sustained its initial break of the eight month support line at 1.1010. We note both the divergence of the daily RSI and the TD perfected set up, which points to a near term rebound. Currently this is indicated to be corrective only and terminate circa 1.1065 and while capped by the 1.1123 end of August low, we will consider the market as offered”.
“We look for losses to the June and July lows at 1.0952/12. Fridays price action was an outside day to the downside and we do not think these lows will hold either. Below here we target the 1.0682 32 year support line”.