EUR/USD downside limited around 1.0600 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the likeliness that the pair’s downside could be limited around the 1.0600 area.

Key Quotes

“EUR/USD tried to rebound yesterday, but given that the intraday Elliott wave counts intraday have neutralised and the daily count is suggesting that the downside is limited to 1.0600”.

“The market has recently failed on its initial attempt at 1.0820/26, which represents the 50% retracement and the top of the cloud, Attention is on the 55 day ma at 1.0602 and the base of the cloud at 1.0563. We suspect will need to go below the base of the cloud to re-target recent lows at 1.0352/40”.

“Initial resistance lies at 1.0775 ahead of 1.0820/26. Only above 1.0830 would introduce scope to 1.0875 December high and the 200 day ma at 1.0985”.