20 Jan 2014
Flash: EUR/USD 6 month support line and cloud support eroded - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that EUR/USD came under pressure last week and eroded its 6 month uptrend and the base of its cloud support at 1.3564.
Key Quotes
“This has left the 4 month support line at 1.3516 exposed and it is currently being eroded. Failure here should be enough to trigger the next leg lower. We continue to look for the market to come under pressure and target 1.3348/1.3295 (recent low, Fibo and 200 day ma).”
“Initial support is the 1.3525 low from early December. We note the 13 counts and Elliot wave 5 counts on the intraday charts and these imply that 1.3458 (the 38.2% retracement of the move up from July 2013) will hold the initial test and provoke some consolidation.! Rallies should ideally remain capped 1.3607/29 (the short term downtrend)”
Key Quotes
“This has left the 4 month support line at 1.3516 exposed and it is currently being eroded. Failure here should be enough to trigger the next leg lower. We continue to look for the market to come under pressure and target 1.3348/1.3295 (recent low, Fibo and 200 day ma).”
“Initial support is the 1.3525 low from early December. We note the 13 counts and Elliot wave 5 counts on the intraday charts and these imply that 1.3458 (the 38.2% retracement of the move up from July 2013) will hold the initial test and provoke some consolidation.! Rallies should ideally remain capped 1.3607/29 (the short term downtrend)”