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According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional rallies in the pair should be of low impact while below 1.1996.

Key Quotes

EUR/USD has again sold off, it has ignored the 13 count and the daily RSI has not confirmed the new low. The market stays immediately offered below the accelerated downtrend at 1.1758 but rallies will have very little impact while below the 1.1996 14th May high. Currently the Elliott wave count is suggesting recovery to 1.1860/1.1980. We note the TD perfected set up and a number of warning signals all of which suggest that a correction higher is imminent”.

“We target the 1.1616 May 2016 high and then the 1.1553 November low with the 200 week ma at 1.1442 our ultimate goal”.