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Karen Jones, Team Head FICC Technical Analysis at Commerzbank, noted the negative view on the pair remains unaltered despite the recent price action.

Key Quotes

EUR/USD charted a key day reversal on Friday, this has alleviated downside pressure but currently has not negated it. Intraday Elliott wave counts suggests that intraday bounces should struggle. Beyond this attention remains on the 1.1027 recent low and the base of its down channel at 1.0948. Below here lies the 78.6% retracement at 1.0814/78.6% retracement”.

“Nearby resistance is the 200 day ma at 1.1283, but key resistance is 1.1339/58, 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”.