EUR/USD: 1.1695 interim support provokes a sharp rally – Commerzbank

EUR/USD has been advancing above 1.1850, the highest in a month, after the pair rebounded from the August low at 1.1695. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has now a positive stance and marks the initial resistance at 1.1871 followed by 1.1971 and 1.2015.

Key quotes

“EUR/USD has seen a huge rebound from the 1.1695 August low, it has eroded the near-term downtrend and last weeks high at 1.1831. This tips us to a neutral to positive stance.” 

“Intraday Elliott wave counts are more positive and above 1.1871 (21st September high) would initiate recovery to 1.1971 and then 1.2014/15.” 

“A close above 1.2015 will introduce scope for further gains to 1.2625, the 200-month ma.” 

“Dips are like to find intraday support at 1.1810/1.1775. A close below 1.1688 would imply losses to the recent low at 1.1612.”