EUR/USD risks a deeper pullback – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s short-term risks keep pointing to further downside.

Key Quotes

“EUR/USD is sidelined and is sitting just above the 1.0938 4 month support line”.

“We view the past 4 weeks of consolidation as a correction only and this leaves the near term risk on the downside”.

“The intraday Elliott wave count has turned negative and rallies should struggle circa 1.1025/50. The recent highs at 1.1165/87 are acting as nearby resistance and maintain our negative bias”.

“It leaves the market eyeing 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.