EUR/USD: Bottoming formation yet to be confirmed – Commerzbank

Axel Rudolph, analyst at Commerzbank, suggests that EUR/USD pair is still targeting the April and May lows as well as the three month resistance line at 1.1089/1.1110, having bounced off the September 17 low at 1.0990.

Key Quotes

“Only a daily chart close above the August 26 high at 1.1164 would confirm a bottoming formation and put the 200 day ma at 1.1254 back on the cards. Support below the recent lows at 1.0927/26 comes in at the June 2016 low and the March 2017 high at 1.0912/07.”

“Failure at 1.0927/26 would negate our bullish outlook and put the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814 on the map.”