EUR/USD downside seen struggling around 1.0650/10 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the downside momentum in spot is expected to find strong support in the 1.0650/10 area.

Key Quotes

“EUR/USD last week eased lower . the Elliott wave count on the daily is suggesting that the pullback will halt circa 1.0650/10 and failure here is needed to add weight to the idea that the correction higher is complete and would cast attention back to the 1.0372/40 recent lows. The intraday Elliott wave counts are more negative”.

“Currently we remain unable to rule out a move to 1.0820/26 50% retracement and the top of the cloud and 1.0875 the December high, although this is looking less likely. This will make little impact on the overall bearish chart”.