EUR/USD: a top in place? – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains corrective for the time being.

Key Quotes

“EUR/USD briefly spiked higher but failed to close above the 1.2042 2012 low. The new high has also been accompanied by a divergence of the daily RSI and this suggests that the market has topped for now. Initial support is offered by the 2 month support line at 1.1801 ahead of the 4 month uptrend at 1.1687. Current intraday Elliott wave counts imply that the initial uptrend will hold”.

“Above 1.2070 sits the 50% retracement from the move down from the 2014 high at 1.2168”.

“Failure at the five month uptrend line will trigger losses to the mid-June high at 1.1296 and the more important 1.1110 end of May low”.