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Karen Jones, analyst at Commerzbank, suggests that EUR/USD pair is consolidating sideways, bounces have been very tepid and it remains on the defensive.

Key Quotes

“Intraday Elliott wave counts suggests that intraday bounces should struggle circa 1.1150. Beyond this attention remains on the 1.1027 recent low and the base of its down channel at 1.0955. Below here lies the 78.6% retracement at 1.0814/78.6% retracement. Nearby resistance is the 200 day ma at 1.1284, but key resistance is 1.1343/65, the 2018-2019 down channel and the 55 week ma. A weekly close above this latter level is needed for us to adopt an outright bullish stance.”

“The market will need to regain the 55 week ma and channel at 1.1343/65 to generate upside interest.”