EUR/USD is consolidating below key resistance – Commerzbank

Karen Jones, analyst at Commerzbank, notes that EUR/USD pair sold off yesterday and there is scope to extend its decline to the 55 day ma at 1.1065, but they should see some stabilisation around there.

Key Quotes

“Overhead the market is facing tough resistance at 1.1197-1.1240 – namely the 55 week ma, the 2019-2020 down channel and the recent high and it is probable that it just needs further consolidation. This guards the 200 week ma at 1.1360 which continues to represent a critical break point medium term.”

“Dips lower are well supported by the 55 and 20 day ma at 1.1095/1.1065 and the 3 month uptrend at 1.1047.”

“Failure at the uptrend would target the 1.0981 29th November low.”