EUR/USD: the euro can still rebound in the very short term before falling again (Commerzbank)

Commerzbank believes that the EUR/USD can extend its rebound on the forex in the very short term, before resuming a decline.

"The short-term EUR/USD outlook remains negative. The euro posted a small rebound that was very short - this should remain soft and stop near 1.0645/70. A break of the Fibonacci support at 1.0555 is expected to trigger a decline towards the trough of March at 1.0494, followed by the January low at 1.0352/40.

In the very short term we could see a continuation of the rebound before a new decline.

A close above the 200-day moving average at 1.0852 could bring the 1.0978 threshold back in sight."