EUR/USD scope for a test of 1.07 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of a visit to the 1.0700 area.

Key Quotes

“EUR/USD has at last cleared the short term resistance line with some force, currently we would allow for gains to the 1.07 recent spike high and the 1.0820 50% retracement. The intraday Elliott wave counts are conflicting suggesting that the market will struggle around 1.0630 intraday. There is scope for 1.0875 the December high. At this stage we are unable to rule out a move to the 200 day ma at 1.1042”.

“The market stays bid near term while above 1.0450. Failure here would cast attention back to the 1.0372/40 recent lows. We await a close below the 1.0372/40 lows from mid December 2016 to trigger another leg lower”.