EUR/USD: euro rebounds remain limited (Commerzbank)

Commerzbank notes that the EUR/USD is still bearish in the short term and that rebounds could meet with strong resistance.

"The EUR/USD ended the week sitting on the support offered by the trend line at 1.2268/34. The rebound from this area is expected to remain limited by the 1.2345/65 level. Beyond this, the EUR/USD should continue to remain heavy, while the new peak was accompanied by a divergence of the daily and weekly RSI.

As long as the EUR/USD moves below the 20-day moving average at 1.2364, the EUR/USD will remain directly bearish.

A break below the uptrend lines should trigger a move towards support at 1.2206/1.2165, the January low."