FXStreet Karen Jones, head of FICC Technical analysis at Commerzbank, notes that a rally of the pair in the area of the 1,0900 a strong resistance to bump.
“The Euro fell after the important Umkehrtag on Monday, and with the divergence at the daily RSI. The Pair reached the 20-day MA of 1,0854 and while this can lead to a slight recovery, we assume that Intraday rallies will remain through the 1,0900 limited. We expect a deeper Retracement and a negate of the upward pressure, when it comes to a closing price below the 200-day MA of 1,0826. To note is that an important Umkehrtag is often the Signal 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 1,0734 and 2017 support line of 1,0650 come.”
** FXStreet News Editorial, FXStreet**