EUR/USD correction higher complete? – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted technicals could be pointing to the end of the recent correction higher.

Key Quotes

“EUR/USD is holding at the 1.07 area. The Elliott wave count is suggesting that an ‘a-b-c’ correction higher terminated at 1.0719 recently and we look for the 1.0587 near term support line to be eroded - failure here is needed to add weight to the idea that the correction higher is complete and would cast attention back to the 1.0372/40 recent lows”.

“Should the market go above 1.0720, we remain unable to rule out a move to 1.0820 50% retracement and 1.0875 the December high”.