EUR/USD to suffer a deeper retracement below the 1.20 mark – Commerzbank

EUR/USD has dropped to 1.21 as dollar strengthens across the board. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to extend its slide towards the Mid-May low at 1.2051. 

EUR/USD has eroded last weeks low and a deeper sell-off looks likely

“EUR/USD is under pressure near term and has eroded the 23.6% retracement at 1.2133. We would allow for a deeper retracement to 1.2051 and a possible slide to the 1.1994/86 band of support (mid-March highs and the 22nd April low), which will ideally hold the downside.” 

“Initial resistance is 1.2184, ahead of the 1.2266 end of May high.”