Monday, July 18, 2011

Commerzbank: negative outlook for EUR/USD

Technical analysts at Commerzbank note that though the single currency has rebounded last week versus the greenback from the 200-day MA at $1.3912, the outlook for the pair EUR/USD remains negative as long as it’s trading below the downtrend line at $1.4496.

Resistance levels are situated at Thursday’s maximum at $1.4282 and the 55-day MA at $1.4343. Euro went below support of June minimum at $1.4073, so the specialists believe that it’s currently on its way back down to the 200-day MA at $1.3912.

According to the bank, if EUR/USD breaches the 4-month minimum at $1.3837 hit last Tuesday, it will slide to the $1.3717/1.3680 area limited by the 2010-2011 uptrend line and the 55-week MA.  

daily eurusd 13-05

Chart. Daily EUR/USD

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