EUR/USD set to plunge towards the 1.1395 level – Commerzbank

EUR/USD is consolidating near term at the 200-week ma at 1.1575, and the 55-month ma at 1.1577. However, downside risks remain, and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees scope for a dive to the 1.1395 mark.

Downtrend at 1.1688 to cap any rally

“Intraday rallies will find an accelerated downtrend at 1.1688, but key nearby resistance is the 1.1792 three-month downtrend.”

“We note that the intraday Elliott wave counts have already turned negative, which implies another leg lower fairly soon.”

“Next key support of note is going to be the previous downtrend (from 2008) which is now located at 1.1395.”