In light of the ongoing recovery in spot, there is now the chance of a visit to the 1.1875/1.1990 band, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“EUR/USD has eroded the 20 day ma and as a result we are going to have to allow for deeper retracement into the 1.1875/1.1990 band. Very near term while above the 1.1617 1 st June low we will assume an upside corrective bias. It is interesting to note that the intraday Elliott wave counts are still indicating failure and for that reason we will stay sidelined today”.
“The loss of 1.1617/16 should be enough to signal a retest of the target band at 1.1553-1.1424. This is the location of the November 2017 low, the 200 week ma and the 50% retracement of the move from 2017- 2018″.
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