EUR/USD negative bias intact, focus on 1.0820 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair remains exposed to a re-test of the 1.0820 area.

Key Quotes

“EUR/USD has started to weigh on the downside within its short term trading range. We view the past 3 weeks consolidation as a correction only and this leaves the risk on the downside”.

“The intraday Elliott wave has turned negative and rallies should struggle circa 1.1050/65. The recent highs at 1.1165/87 are acting as nearby resistance and maintain our negative bias. It leaves the market eyeing 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.

“Initial resistance are the recent highs at 1.1165/87 and we look for the market to fail here. Above here lies 1.1231 the 61.8% retracement of the post Brexit move”.