EUR/USD could slip back to 1.1010 – Commerzbank

According to technicals, a retracement to the 1.1010 area stays on the cards, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The Euro continues to hold below the 1.1300 November 2016 high, and the near term risk is that losses will extend to the 2 month uptrend at 1.1153. We note the divergence of the daily RSI and the daily Elliot wave count, which is suggesting that we allow for a retracement back to circa 1.1010. This guards the 200 day ma at 1.0824. Intraday rallies are indicated to struggle circa 1.1240”.

“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1472, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.