EUR/USD is posting modest recovery gains around 1.1550 as the pair  is losing downside momentum. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects EUR/USD to test the downtrend at 1.1640.

The daily RSI has again diverged

“EUR/USD remains under pressure but the new low at 1.1522 has again not been confirmed by the daily RSI and we would now exit any remaining shorts because there is a significant loss of downside momentum as we approach 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.” 

“Intraday rallies will find an accelerated downtrend at 1.1640, but key nearby resistance is the 1.1767 three-month downtrend.”