According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should keep the bearish stance while below 1.2155.

Key Quotes

“EUR/USD’s remains under pressure as the sell-off has eroded the 23.6% retracement at 1.2019 and the 200 day ma at 1.2018. However we have a number of signals suggesting that the market will consolidate its losses and we would allow for this possibility. We have tightened up our stops on our short positions considerably. Longer term we will allow for losses back to the 55 week ma at 1.1812. We note the divergence on the 240 minute chart and this is suggesting that we allow for a bounce to 1.2045/1.2115”.

“We will maintain an immediate bearish bias below the 1.2155 February low”.

“Our overall bearish bias is maintained while capped by the 2008-2018 resistance line at 1.2622”.