EUR/USD faces some consolidation near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair could attempt to consolidate in the short-term horizon.

Key Quotes

“EUR/USD’s rally last week faltered just ahead of the 20 day ma and Fibo resistance at 1.1610/24 and we would allow for some near term consolidation. Initial support lies at 1.1508 ahead of 1.1411, the 78.6% retracement. Note that the Elliot wave count is suggesting that the rally will fail here and as a precaution we have partially covered our long positions and tightened the stops on the remainder. Only above 1.1625 will neutralise the chart again and allow for another run up to the 1.1790/1.1815 region. We continue to favour the topside but there is more work to be done”.

“The 1.1411 level is seen as the last defence for the 1.1322 200 week ma and the 1.1301 recent low”.