EUR/USD: failure at the 1.2092 September high gains traction - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the EUR/USD pair is more likely to extend its sell-off from September high and as a precaution, suggests exiting long positions.

Key quotes:

“EUR/USD has reversed ahead of the 1.2092 September high, and has sold off to the 1.1961 November high. The intraday Elliott wave counts have turned a lot more negative and are currently implying scope for a sell off to the 2 month uptrend at 1.1840. As a precaution we will attempt to exit our long positions.”

“It is bid above the 1.1840 short term uptrend and this guards the 1.1717/12 November and December lows. The 1.1712 mid November low guards the 1.1553 7 th November low.”

“A rise above 1.2092 will target the 1.2168 50% retracement of the move down from the 2015 high and then the 1.2414 200 month ma.”