EUR/USD: Correction towards the uptrend line at 1.1152 – Commerzbank

EUR/USD suffered a 0.3% decline on Friday to register its fourth straight daily loss and the pair is set to test the trendline support at 1.1152, which should hold the downside, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“EUR/USD has spent the last 2 weeks correcting lower. The market has reached the 38.2% retracement at 1.1172 and will very shortly encounter the near-term uptrend at 1.1152, which is expected to hold the downside. We expect the correction to complete very shortly and look for the market to resume its up move.” 

“The market recently charted a new high at 1.1422 and this together with the March high at 1.495 represent quite formidable resistance and we would allow them to hold the initial test. Above here will target 1.1570, the 2019 high, then 1.1815/22, the 61.8% retracement of the move down from the 2018 peak and the 1.1862 2008-2020 resistance line.”