In the midst of market quiet, the dollar has been extending its gains, as the EUR/USD remains above 1.19. The outlook for the pair remains gloomy, with Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, predicting a drop to the March low of 1.1704.
“The prognosis for the EUR/USD currency pair remains bleak. It is still aiming for the current June low of 1.1847, which is near to the early March low and the 78.6 percent Fibonacci retracement at 1.1836/24, and will do so as long as it is below the 200-day moving average of 1.1999. Further down, the low of April 5 is 1.1738, and the low of March is 1.1704.”
“The 1.2052 mid-May low and the 55-day moving average at 1.2087 provide little resistance above the 200-day moving average.”
Continue reading
