FXStreet (Edinburgh) - The single currency is trading mostly flat vs. the greenback at the beginning of the week, taking EUR/USD to the vicinity if 1.1300 the figure.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argues the pair “extended its gains on Friday but as expected rallies found resistance offered by the 1.1468 May high. The rejection from here places attention back to support at 1.1228/14 (support line and last weeks low). Should a move above 1.1470 be seen, we remain unable to rule out gains to the 1.1582/78.6% retracement and the 55 week ma at 1.1586 where we would expect to see the market fail”.
In addition, Currency Strategist at Scotiabank Eric Theoret keeps the cautious tone around the pair, suggesting “momentum signals are modestly bullish and are being confirmed by the crossing of the 9 day MA (1.1307) to the upside of the 21 day MA (1.1297). However we are cautious as we note the lack of follow-through from Thursday’s 1.1435 close with gains restrained above 1.1450 and formation of a doji candle signaling uncertainty”.
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