Browse: Home > EUR/USD allow for a near-term setback - Commerzbank
Wednesday, July 21, 2010
Forex Special (Barcelona) - The Euro opened Wednesday's European session at levels around 1.2900 after having failed, again, to break 1.3000 level, which, according to Karen Jones, technical analyst at Commerzbank increases the odds for a near term setback.
Jones advices to allow for a setback to levels around 1.2785/55 or 1.2590: "EUR/USD is struggling to gain a foothold over 1.3000, it has failed for the past 4 days to do so and we would allow for a near term setback. Dips lower will find initial support at 1.2785/55, but will need to hold over 1.2590 for an upside bias to be preserved."
On the upside, Jones points out to 1.3120/50 target: "Last week we saw the market sever its 7 month downtrend and rally strongly higher. We have an inverse head and shoulders pattern on the chart which offers a minimum upside measured target to 1.3120/50."