EUR/USD: correction lower started? – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot could have started a correction lower in light of the recent price action.

Key Quotes

“EUR/USD has reached long term Fibonacci resistance at 1.2517/1.2600. We note that the daily and weekly RSI are diverging and now the steep January support line at 1.2385 is being eroded and we should see the start of a correction lower. Below 1.2385 lies the January 18 low at 1.2165 and, more importantly, the August and September highs at 1.2092/70”.

“Above 1.2600 will test the 2008-2018 resistance line at 1.2710”.