EUR/USD bearish, rallies struggling at 1.1050/1.1100 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the pair risks further pullbacks towards 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 1.1050/1.1100. The previous channel – now located at 1.1228, is acting as nearby resistance and maintains 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”.