EUR/USD initial resistance is located at 1.0821/51 – Commerzbank

In view of Senior Technical Analyst at Commerzbank Axel Rudolph, the pair’s upside should find initial hurdle in the 1.0821/51 band.

Key Quotes

“EUR/USD has eroded its 32 year uptrend and reached the 2015-2016 uptrend at 1.0606. This will need to be broken on a closing basis to confirm the move lower. However the move to a new low last week has been accompanied by a TD perfected set up on the daily chart and there are 13 counts on the intraday charts and we would allow this to hold the initial test. Below the current November low at 1.0569 lie the 1.0523 December 2015 low and the 1.0457 March 2015 low”.

“Initial resistance is the 1.0821 March low and the 1.0851 October low and the intraday Elliot wave count points to a 1.0775/1.0875 possible rebound”.

“Only above here would alleviate extreme downside pressure for a retest of the 1.1123/25 August and September lows, but even this would not negate our negative bias”.