EUR/USD pullback should struggle near 1.0650/10 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair’s downside facing tough support in the 1.0650/10 band.

Key Quotes

“EUR/USD has at last started to react lower and is now eroding the 1.0682 short term uptrend. The Elliott wave count on the daily is suggesting that the pullback will halt circa 1.0650/10 and failure here is needed to add weight to the idea that the correction higher is complete and would cast attention back to the 1.0372/40 recent lows. The intraday Elliott wave counts are more negative”.

“Currently we remain unable to rule out a move to 1.0820/26 50% retracement and the top of the cloud and 1.0875 the December high, although this is looking less likely. This will make little impact on the overall bearish chart”.