The EUR/USD rallied very strongly last week. The market used the 1.1994/89 area as support for the upward momentum. This is the high from mid-March and the low from April. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the pair is likely to retest the February high of 1.2243.
“We suspect the correction is over and expect the market to retest 1.2210/43, the 78.6% retracement of the move this year and the February high, as well as the 2021 high of 1.2349.”
“Setbacks should be limited by the 55-day MA at 1.1965 and the 200-day MA at 1.1950. This is reinforced by the April 19 low of 1.1950.”
Thus, in Karen Jones’ view, there is a very good chance that the EUR/USD will continue to rise.
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