EUR/USD points southwards near term – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could see its downside renewed in the short term.

Key Quotes

“EUR/USD has spent the past 3 weeks holding sideways to higher. We view this correction as now mature and near term risks remain on the downside”.

“The intraday Elliott wave has turned negative and we look for further weakness this week, rallies should struggle circa 1.1100. The previous channel – now located at 1.1224, 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”.