EUR/USD to tick down towards the August low at 1.1664 – Commerzbank

The safe-haven dollar has been extending its gains, pushing EUR/USD toward 1.17. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to test the 1.664 August low though a small rebound on Monday is on the cards.

Attention is on the August low at 1.1664

“EUR/USD last week sold off and has now eroded the 1.1752 mid-July low. We have negative Elliott wave counts and a sell signal on the DMI so are biased to the downside.”

“We look for losses to the 1.1704 March low and the 1.1664 August low.” “We note the 13 count on the 240 minute chart and may see a small rebound today towards 1.1785.”

“The August low at 1.1664 guards the 200-week ma at 1.1576 and the previous downtrend now at 1.1424.”