EUR/USD resistance appears at 1.2040 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees EUR/USD facing a significant resistance around the 1.2040 area.

Key Quotes

“The daily RSI has not confirmed the new high and Friday saw the start of a sell off, and we suspect that the 1.20 level may prove to be a bit of a psychological level. Nearby support is provided by the accelerated uptrend at 1.1656 and the 3 month uptrend at 1.1490 and while above here, there is scope for further gains”.

“Resistance lies at 1.2040 the 2012 low, then 1.2170, the 50% retracement from the move down from the 2014 high”.

“Failure at the 4 month uptrend will trigger losses to 1.1296 and the more important 1.1110 end of May low”.