EUR/USD seems to have gone into a consolidation phase a little above mid-1.1500s after dropping toward 1.1500 on Thursday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stage a minor bounce towards the 1.1675 downtrend.

New lows for the year not maintained

“EUR/USD last week eroded the 1.1522 October low but did not maintain the break.”

“We may see a small bounce higher but the pair stays directly offered below the 1.1675 five-month downtrend.”

“For now, attention is on 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.”