Thursday, July 21, 2011

Technical Analysts at Commerzbank comments on EUR/USD

The single currency keeps going up this week from Monday’s minimum at $1.4014.

Technical analysts at Commerzbank, however, keep giving bearish forecasts for EUR/USD. In their view, the pair’s advance will be limited by the 55-day MA at $1.4307. The specialists say that the outlook for euro will remain negative as long as it’s trading below the downtrend line at $1.4471.

Strategists at Citi note that plenty of positive news is already priced in, so investors should buy carefully. Resistance is situated in the $1.43 area where the 100- and the 55-day MA are meeting each other, while support is found at $1.4240, $1.4210 and $1.4180.

daily eurusd 12-20

Chart. Daily EUR/USD

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