EUR/USD rallies remain corrective only – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the occasional bullish attempts in the pair should be corrective only.

Key Quotes

“EUR/USD’s rally higher has extended through last weeks high at 1.1040. We note the TD perfected set up on the 60 min chart and the 13 count and the intraday charts continue to indicate that this is a corrective move only. Next resistance comes in at the 1.1105/23 August, September and October 7 th lows and then the 1.1206 6 month resistance line. This should hold and provoke failure”.

“Attention should then revert to the downside and to the next support – namely the 1.0821 the March low. This was also the May 2015 low and is a short term pivot for the market. Below here we target the 1.0682 32 year support line”.