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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s stance should remain negative while below 1.1790.

Key Quotes

EUR/USD recovered slightly yesterday, but not enough to dislodge any resistance of note. For now we will assume while below the 55 day ma and the last week’s high at 1.1790 a downside bias remains. The intraday Elliott wave counts are more negative and currently the market is on the defensive and attention has reverted to the 1.1510/08 recent lows and below here the 200 week ma at 1.1382″.

“A recovery above 1.1790 will target 1.1855. Above 1.1855 we look for a deeper retracement to the 1.1930 55 week ma, with scope for the 1.1986 200 day ma, where we suspect that it will fail”.