EUR/USD seems to have gone into a consolidation phase around 1.1600 on Tuesday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to challenge the recent low of 1.1522 and sees scope for a slump to 1.1366.

Negative below the five-month downtrend at 1.1696

“EUR/USD has recently just failed just ahead of the 55-day ma at 1.1694 and the 1.1696 five-month downtrend. The emphatic rejection from here implies that the 1.1522 recent low is exposed.”

“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 1.1366.”