EUR/USD initial resistance appears at 1.0850/1.0900 – Commerzbank

Technicals are now suggesting that occasional rallies in the pair should find the initial hurdle around 1.0850/1.0900, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has eroded the 1.0851 October low and the 1.0821 March low, this is expected to act as a key break down point to the 1.0682 30 year uptrend and the 2015-2016 uptrend at 1.06. The 55 day ma at 1.0961 will now offer immediate resistance but the Elliot wave count is suggesting that rallies will now falter ahead of 1.0850/1.0900”.

“Above1.0925 should alleviate extreme downside pressure for a retest of the 1.1123/25 August and September lows, but even this would not negate our negative bias”.