EUR/USD still points to a test of 1.0976 – Commerzbank

According to Axel Rudolph, Senior Technical Analyst at Commerzbank, the pair remains poised for a visit to the 1.0970 area in the longer run.

Key Quotes

“EUR/USD formed a significant top at 1.1366 during August and longer term targets the seven month support line, currently at 1.0976, and also the March low at 1.0826”.

“The 200 day moving average, now at 1.1138, twice acted as support but is still expected to eventually give way”.

“Once slid through, the seven month support line at 1.0976 will be targeted next, together with the June and July lows at 1.0952/12”.

“Only an unexpected rise above the 1.1366 August high would introduce scope to 1.1416/65, the mid-April and June highs. Minor resistance below these levels comes in along the 2016 downtrend line at 1.1316”.