Forex: EUR/USD: Risk on the downside, could test 1.4440 area - Commerzbank

The Euro remains trading on a steady downward parttern since topping at 1.4845 on September 23, reaching, so far 1.4500 low on Asian session, and despite the current pick up, Karen Jones, technical analyst at Commerzbank, observes the possibility of further retreat, heading to levels around 1.4400.

The Euro as started to erode 1.4550 area, and, according to Jones, opening the doors for a deeper downward correction: "EUR/USD has started to erode support at 1.4551/38, leaving under pressure in the near term to see a deeper correction lower."

On the downside, Jones points out to 1.4440 as initial target: "We would expect intraday rallies to now remain capped by 1.4640/75 and while below here the risk is that we will see a deeper to 1.4440 then 1.4381/16 (55 day ma uptrend)."