EUR/USD: Watch for a base/reversal near 1.1177-1.1156 – Goldman Sachs

The Goldman Sachs analysts are out with their Elliot wave analysis on the EUR/USD pair, suggesting further downside in play after the spot breached the 1.1200 support yet again.

Key Quotes:

“EURUSD is back to testing multi-month lows... 

The level to watch here is 1.1177-1.1156.

All of the price action since August has been corrective and overlapping. At this point, it's tough to have a strong view either way until a break from this range has been attained. Moreover, there have been two false breaks to the downside; the first in November through 1.13 support, the second in March through 1.12.

The 1.1177-1.1156 pivot includes both the interim low from Mar. 7th as well as an ABC target off the Mar. 20th high. Meaning that up this point the sell-off continues to look corrective in nature. Would have to see a break lower than 1.1177-1.1156 to have confidence in a more impulsive decline. For now, it seems reasonable to watch for a base/reversal.

View: So far not seen any evidence of an impulsive selloff. Next in focus 1.1177-1.1156. Wary of another base/reversal. Need it below there to consider momentum.”