The EUR/USD it posted losses for the fifth week in a row and remains relatively quiet below 1.1600 at the start of the week. Karen Jones, Head of the Technical Analysis Research Team at Commerzbank, expect the pair to fall towards 1.1492 / 95 with the next key support located at 1.1395.
RSI has diverged
“EUR / USD continued slowly lower last week and we expect further weakness to the 50% retracement of the 2020 move and the March 2020 high at 1.1492 / 95, but the next key support is going to be the downtrend. previous (from 2008) which is now at 1.1395 “.
“We note that the new low has not yet been confirmed by the daily RSI and that suggests some caution.”
“Intraday rallies will find an accelerated downtrend at 1.1659, but the key nearby resistance is the three-month downtrend at 1.1777.”