EUR/USD set to correct higher towards the 1.1456/1.1522 resistance zone – Commerzbank

EUR/USD has returned to the 1.1250 area. However, RSI divergence points to a corrective phase higher with initial resistance seen at the 1.1456/1522 region, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

New low not confirmed by the daily RSI

“EUR/USD has slid to the October and December 2019 highs at 1.1240/1.1180 which are expected to offer short-term support.”

The new low has not been confirmed by the daily RSI and we also note two 13 counts, both are warning signs.

“Any bounces will find tough resistance at the 1.1614 five-month downtrend and while capped here, the overall bias is negative.” 

“Initial resistance is the 1.1456/1522 October low, the 5th November low and the 20-day ma.”

“Below 1.1180 would target 1.1000, the 78.6% retracement of the move seen in 2020.”