Karen Jones, head of FICC Technical analysis at Commerzbank, notes that the positive Outlook under the 200-day SMA, the weight loss today is 1,0830.
“The Euro had an important Umkehrtag and with the new High of 1,1040, there was a divergence of-the-day RSI. This allows a downward movement, the upward pressure will only be negated with a closing price below the 200-day MA of 1,0830. To note is that an important Umkehrtag is often the indicator for the end of a trend movement. Above the 200-day MA, we can not exclude a motion to the January 2015 Low of 1,1098 and the 78,6% Retracement of 1,1146 (NOT favoured).”
“Under the 200-day MA, it is a loss to the 55-day MA of 1,0724 and 2017 support line of 1,043.”
** FXStreet News Editorial, FXStreet**