EUR/USD corrects higher, key resistance awaits at the 1.1762 four-month downtrend – Commerzbank

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EUR/USD is correcting higher near-term. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the world’s most popular currency pair to test the downtrend at 1.1630.

RSI has diverged

“EUR/USD’s new low at 1.1522 was not confirmed by the daily RSI and the market is correcting higher very near-term.”

“Intraday rallies will find an accelerated downtrend at 1.1630, but key nearby resistance is the 1.1762 four-month downtrend.”

“Below 1.1522 lies the 50% retracement of the move from 2020 and the March 2020 high at 1.1492/95.”

“Key support is the previous downtrend (from 2008) which is now located at 1.1395.”