Karen Jones, analyst at Commerzbank, suggests that the EUR/USD pair has held over the 1.1110, the May 2017 low but seems to be losing upside momentum just ahead of the 55 day ma at 1.1274.
Key Quotes
“Market may need to consolidate further, intraday Elliott wave counts are contradictory. For now, we are unable to rule out a retest of the 1.1110 support. Be advised that the pattern being traced out is a potential large reversal pattern, we have divergence of the weekly RSI and a 13 count on the weekly chart as well and there is a risk of reversal.”
“Support at 1.1110 is regarded as the break down point to 2018-2019 support line (connects the lows) at 1.1059, the 1.0963 TD support and the 1.0814/78.6% retracement.”
“Initial resistance is the 100 day ma at 1.1329 and the resistance line at 1.1356 ahead of the 200 day ma at 1.1413. Only above the 200 day ma would this imply reversal.”
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