The EUR/USD has reached key levels, around the 1.3958 50% retracement of the sell-off from the 2008 peak, notes Commerzbnak.
"It has also registered a 13 count on the daily chart (TD combo) and we look for failure ahead of 1.40. For now we see minor negative divergence with the daily RSI, though, and our attention is drawn to support offered by last week’s low at 1.3834 and the February high at 1.3826. Key short term support is the 1.3782," CB projects.
To negate this view, CB thinks that a daily chart close above 1.4000 would be a huge change in sentiment for the Euro and lead to the 78.6% Fibonacci retracement of the move down from 2011 at 1.4320 being targeted.
In line with this view, CB runs a short EUR/USD position from 1.3916, with a stop at 1.4020, and a target at 1.35.
http://www.efxnews.com/sites/default.../apr14/a48.PNG
http://www.efxnews.com/story/23377/e...re-commerzbank
"It has also registered a 13 count on the daily chart (TD combo) and we look for failure ahead of 1.40. For now we see minor negative divergence with the daily RSI, though, and our attention is drawn to support offered by last week’s low at 1.3834 and the February high at 1.3826. Key short term support is the 1.3782," CB projects.
To negate this view, CB thinks that a daily chart close above 1.4000 would be a huge change in sentiment for the Euro and lead to the 78.6% Fibonacci retracement of the move down from 2011 at 1.4320 being targeted.
In line with this view, CB runs a short EUR/USD position from 1.3916, with a stop at 1.4020, and a target at 1.35.
http://www.efxnews.com/sites/default.../apr14/a48.PNG
http://www.efxnews.com/story/23377/e...re-commerzbank