EUR/USD in an ‘a-b-c’ correction – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the pair could attempt a test of the 1.0820 area within the potential ‘a-b-c’ correction higher.

Key Quotes

“EUR/USD yesterday eased lower – it has seen a minor erosion of the 1.07 recent spike high, the Elliott wave count is suggesting that this is an ‘a-b-c’ correction higher and we have a 13 count on the 240 minute chart so we have attempted tentative shorts. Should the market go above 1.0720, we remain unable to rule out a move to 1.0820 50% retracement and 1.0875 the December high. Nearby the support line lies 1.0568 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”.

“Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.