EUR/USD to climb towards the 1.20 area on a close above downtrend at 1.1772 – Commerzbank

EUR/USD is pushing hard into the two-month resistance line at 1.1772. A break above here would set a falling wedge reversal pattern, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. 

It is possible that EUR/USD is building a reversal pattern

“EUR/USD’s upmove is pushing hard into the short-term downtrend at 1.1772. Currently, while it holds, we are unable to rule out a retest of the recent low at 1.1665.”

“Below 1.1664 will allow for losses to 1.1602, the November 2020 low and the 200-week ma lies at 1.1575, where we would look for signs of stabilisation.”

“It is possible that this may be a falling wedge reversal pattern, but this will only be confirmed on a close above the downtrend at 1.1772. This guards the 1.1909 July high and then the 1.1990/1.2006 March high and 200-day ma.”