EUR/USD still remains on the defensive – Commerzbank

According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, EUR/USD’s price action looks unclear now despite some technicals are on the positive side.

Key Quotes

“EUR/USD spent last week under pressure and the market has eroded the 55 day ma at 1.1042 and the 50% retracement at 1.1030 – it remains on the defensive and the market has now failed for the past 4 weeks at the 1.1180 level, however the intraday Elliott wave counts remain positive and for today we will reattempt tiny long positions”.

“The move lower has neutralised the chart– it is unclear if the market will recover from here to the 200 day ma at 1.1186 and the top of the channel at 1.1269. Or if we will see one more final leg down to the base of the channel at 1.0865 and the 1.0814 Fibo retracement before sustained recovery is seen”.