EUR/USD is approaching the 4 month downtrend – Commerzbank

Karen Jones, analyst at Commerzbank, notes that EUR/USD pair has maintained its recovery from the base of the weekly channel at 1.0892 currently.

Key Quotes

“We have 13 counts on the daily and weekly charts and suspect that the market is attempting to base near term. It will need to close above the 4 month downtrend at 1.1027 to confirm that stance and alleviate downside pressure. This would trigger recovery to the mid September high at 1.1110.”

“A close above here would confirm a bottoming formation and put the 200 day ma at 1.1226 back on the cards.”

“Below 1.0879 we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”