EUR/USD re-focused on 1.0821 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair has now shifted its target to the 1.0820 area.

Key Quotes

“EUR/USD is fast approaching the 1.0821 March low, this may hold the initial test, but it is expected to act as a key break down point to which in turn guards the 1.0682 30 year uptrend and the 2015- 2016 uptrend at 1.06. The 55 day ma at 1.0974 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 1.0925/65”.

“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 1.1300 recent high and 1.1366 August 2016 high (not favoured)”.