In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is expected to face some weakness in the near term.
Key Quotes
“EUR/USD appears to be failing at Fibo resistance at 1.1624 and we would allow for some near term weakness. Initial support lies at 1.1508 ahead of 1.1411, the 78.6% retracement. Note that the Elliot wave count is suggesting that the rally will fail here and we will exit the remaining longs. Only above 1.1625 will neutralise the chart again and allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.
“The 1.1411 level is seen as the last defence for the 1.1322 200 week ma and the 1.1301 recent low”.
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