According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, technicals keep suggesting the ongoing down move should be corrective only.
Key Quotes
“EUR/USD has sold off to a 5 month pivot line at 1.1467 today. We have no strong preference for whether this will hold or not but for now the market remains on the defensive. Between here and 1.1411, the 78.6% retracement, we will ideally see the market hold. This is seen as the last defence for the 1.1330 200 week ma and the 1.1301 recent low. We note that the Elliott wave count is still labelling this as corrective only and ideally we will see 1.1411 hold and provoke reversal”.
“Rallies will find initial resistance at 1.1600/41, the 20 and 55 day ma and only above here will allow for another fun up to the 1.1790/1.1815 region”.
Share
