EUR/USD downside still appears limited near 1.0600 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s decline seems to be limited around the 1.0600 area for the time being.

Key Quotes

“EUR/USD continues to struggle at the 20 day ma. We have no strong bias currently, given that the intraday Elliott wave counts intraday have neutralised but the daily count is still 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 1.0606 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”.