EUR/USD: there's still room for a bearish correction (Commerzbank)

Commerzbank believes that the EUR/USD may still push its short-term correction lower.

"The EUR/USD has reached a long-term Fibonacci resistance at 1.2517/1.2600. We note that the daily and weekly RSIs diverge and that the January trendline has been broken, but the breakout was not sustained. The risk of a short-term correction remains present, however.

Under 1.2335 comes the 18 January trough at 1.2165, and then the solid support level represented by the peaks of August and September at 1.2092/70.

Above 1.2600 we will test the 2008-2018 resistance line at 1.2710."