Wednesday, July 13, 2011

Commerzbank: EUR/USD decline will soon resume

Yesterday the single currency hit the minimum at $1.3837 versus the greenback and then managed to return back to the levels in the $1.4000 zone.

Technical analysts at Commerzbank, however, expect euro’s recovery to be limited. In their view, EUR/USD is going to resume decline to the uptrend support line from 2010 to 2011 at $1.3685.

According to the bank, the pair tested the levels below the 200-day MA at $1.3909 and the 50% retracement support at $1.3900, though hasn’t yet closed down there.

Resistance levels are situated at the 200-week MA at $1.4024, June 16 minimum at $1.4073 and previous support line at $1.4166.

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