EUR/USD correction could be complete – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the correction in spot could be over.

Key Quotes

“EUR/USD’s intraday Elliott wave counts are suggesting that the correction is already complete but the daily Elliott wave allows for a deeper corrective phase, for now we a slightly biased to the former scenario. The loss of 1.1617 should be enough to signal a retest of the target band at 1.1553-1.1424. This is the location of the November 2017 low, the 200 week ma and the 50% retracement of the move from 2017-2018. Below 1.1420 would introduce scope to the 61.8% retracement at 1.1186”.

“Above 1.1775 would imply that the market remains upside corrective and the Elliott wave count is now suggesting scope for a deeper retracement into the 1.1875/1.1990 band and we must allow for this possibility. Very near term while above the 1.1617 1 st June low we will assume an upside corrective bias. A move above the 20 day ma at 1.1752 should be the trigger for this deeper corrective phase”.