EUR/USD now faces resistance around 1.0980 – Commerzbank

Following yesterday’s price action, the pair is expected to find initial resistance in the 1.0980 region, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD did not sustain the break of the 6 month downtrend and the market has reversed sharply taking out the 55 day ma at 1.0979. This guards the 1.0821 March low, which in turn guards the 1.0682 30 year uptrend. The 55 day ma at 1.0979 will now offer immediate resistance ahead of 1.1123/40 – the August and September lows. The Elliot wave count is suggesting that rallies will now falter ahead of 1.1000”.

“Should a close be seen above the 1.1187 downtrend (this will also be above the 200 day ma and the 55 day ma as well) this would negate downside pressure and initiate gains towards the 1.1366 August 2016 high (not favoured)”.