EUR/USD - RSI divergence could yield pullback to 1.2150-1.2110 - Commerzbank

Commerzbank Analyst Karen Jones takes note of the bearish RSI divergence on the EUR/USD chart and mentions scope for a drop to 1.2150-1.2110. 

Key quotes

EUR/USD charted an inside day and has shot higher overnight. The new high has not been confirmed by the daily RSI and we would allow for a small pullback currently this is indicated to terminate circa 1.2150- 1.2110. Beyond this it remains on course to challenge the 1.2432 200 month ma.

Support should be offered by the 1.2092 September high and the 20 day moving average at 1.2016 – the market will remain immediately bid above here.

Below 1.2016 will trigger losses to the 1.1878 uptrend.