EUR/USD downside to get attention below 1.0475 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could face further downside below 1.0475.

Key Quotes

“EUR/USD recovered last week to the 1.0603 resistance line, which is currently holding. The intraday Elliott wave counts conflicting but more positive and the market will have to go back below the 1.0475 20 day moving average to refocus attention on the downside to the 1.0352/40 recent lows”.

“Failure here would cast attention back to the 1.0372/40 recent lows. We await a close below the 1.0372/40 lows from mid December 2016 to trigger another leg lower. Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.