EUR/USD: Scope for a substantial drop to 1.10 on a break below 1.1248 – Commerzbank

EUR/USD managed to close above 1.1300 on Wednesday. The pair is currently holding the 1.1290/48 support zone, but a break below here would clear the way for a slump to the 1.10 level, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Holding support 1.1290/48

“EUR/USD has recently sold off to 1.1290 61.8% retracement of the move seen 2020-2021. We note the 13 count on the daily chart and TD support at 1.1248 and together these levels are holding so far.” 

“Any bounces will find tough resistance at the 1.1635 five-month downtrend and while capped here, the overall bias is negative.”

“Initial resistance is the 1.1513/22 October low and the 5th November low and the 20-day ma at 1.1525.” 

“Below 1.1248 would target 1.10, the 78.6% retracement of the move seen in 2020.”

See: EUR/USD to suffer a substantial drop to 1.1020/00 – Credit Suisse