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#1 20-01-2020 17:25:22

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EUR/USD and GBP/USD will likely pursue losses in the short term...

EUR/USD and GBP/USD will likely pursue losses in the short term according to a technical forecast by Commerzbank

The EUR/USD and GBP/USD currency pairs remain under overall pressure today, after having already dropped significantly last week.

However, according to Commerzbank's daily technical update, both pairs could see further losses in the short term.

For the former pair, Commerzbank says that in light of the recent price action, the pair could extend its fall to 1.1067.

"The EUR/USD came under increasing downward pressure at the end of last week and we are looking at a deeper drop to 1.1067. As the intra-day Elliott wave signals have turned negative, the risk has increased for a downward breach; this would allow us to target the end-of-November low of 1.0979 and neutralise the immediate bullish outlook".

"The market is facing strong resistance at 1.1184-1.1240 - the 55-week moving average, the 2019-2020 downtrend channel and the recent high. This protects the 200-week moving average at 1.1360, which continues to represent a critical medium-term breaking point."

As far as the GBP/USD is concerned, the bank believes that the pair could even visit the key threshold of 1.2847.

Commerzbank notes that the first significant support level is at last month's low of 1.2907:
"A failure here would bring the 4-month uptrend line back to 1.2848 and the 200-day moving average to 1.2687."

"A close above 1.3119 is necessary to alleviate the immediate downward pressure and re-target the Fibonacci resistance level at 1.3284," Commerzbank adds.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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