EUR/USD’s recovery appears to be gaining traction as the market appears not quite ready to test the much more important 1.3503 recent low and the 1.3496 2012 -2014 uptrend, notes Commerzbank.
"These remain the key break down point to 1.2750. Although the 200 week ma at 1.3424 and the 1.3394 55 month ma may offer some interim supports on the way. Only above 1.3701 will alleviate immediate downside pressure for a deeper retracement to 1.3807 (61.8% retracement)," CB projects.
"We will attempt to trade from the short side while below here. Our longer term view remains bearish," CB advises.
In line with this view, CB maintains a short EUR/USD position as a trade recommendation with a revised stop at 1.3675, and a target at 1.3505.
In USD/JPY, CB notes that the pair is sidelined in its range.
"The market is now directly offered below last weeks high at 102.27, although key resistance remains the 2014 downtrend at 102.65," CB ads.
"Longer term we suspect that the risk is growing for a downside break. Directly below lies the 2013-2014 uptrend at 100.35 . We suspect that should 100.00 give way then the market would really start to disintegrate," CB projects.
CB is currently flat on the pair.
