FXStreet Karen Jones, head of FICC Technical analysis at Commerzbank, notes that the prospects of the EUR/USD in the short term remain negative.
«The Euro fell after the important Umkehrtag on Monday, and with the divergence at the daily RSI. This allows a downward movement, the upward pressure will only be negated with a closing price below the 200-day MA of 1,0827. 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 1,0729 and 2017 support line of 1,0647 come.”
** FXStreet News Editorial, FXStreet**