EUR/USD has seen a minor break into new lows for the year. 2014 low and more importantly closed below the 1.3476 previous low, notes Commerzbank.
"A negative bias will remain entrenched below the 1.3587 downtrend. Failure here suggests ongoing losses to the 1.3426 200 week ma en route to the 1.3295 November 2013 low," CB projects.
"Above 1.3587 would delay our negative outlook for a deeper retracement to 1.3665/1.3700, while capped here a negative bias remain intact," CB adds.
In line with this view, CB runs an active limit order to sell EUR/USD at 1.3490, with a stop at 1.3590.
In USD/JPY, CB notes that it continues to see a small rebound off the 101.10 55 week ma.
"For now the range dominates. USD/JPY remains directly offered below the near term downtrend at 101.90, although key resistance remains the 2014 downtrend at 102.45," CB projects.
"Longer term we suspect that the risk is growing for a downside break towards the 2013-2014 uptrend at 100.59. We suspect that were the 100.00 level to give way, the market would really start to disintegrate," CB adds.
In line with this view, CB runs an active limit order to sell USD/JPY at 101.75 with a stop at 102.45.
