EUR/USD could target 1.1621/10 if drops below 1.1662 – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, sees the pair could extend losses to the 1.1620/10 band if 1.1662 is cleared.

Key Quotes

“EUR/USD’s break out of its two week downward channel at 1.1784 was short lived with further range trading to be seen. As long as the late July low at 1.1612 underpins, though, the recent highs at 1.1848 and at 1.1910 will remain in sight. A rise above the 1.1910 level will put the 1.2042 2012 low on the map. Still further up sits the 50% retracement from the move down from the 2014 high at 1.2168”.

“Were an unexpected drop below the 1.1662 level to be seen, however, the 1.1621/10 area would be targeted. It is where the late July low meets the five month support line”.

“Failure at the five month uptrend line will trigger losses to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.