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Once current consolidation has run its course, as EUR/COP trades between 4300 and 4144, the December high and December low respectively, the pair should eye the June 2020 low at 4004, according to Commerzbank’s Axel Rudolph.

Key quotes

“EUR/COP has been consolidating below the December high at 4300 over the past month or so and is currently slipping back towards the December and current January lows at 4161/4144. Once slipped through, the July low at 4087 will be back in sight, together with the June low at 4004. Around the 4000 mark the currency pair is likely to then stabilise once more.” 

“If an unexpected bullish reversal were to be seen and a rise above the December high at 4300 ensue, we would turn bullish and target the 4350 late November high and also the 4487 late October low. This is not our preferred scenario, however, and instead we believe that further downside remains in store.”