EUR/USD looks side-lined for now – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes EUR/USD is likely to face some consolidation for the time being.

Key Quotes

“EUR/USD last week sold off to and bounced off the 55-day ma at 1.2086. It is possible that this was an ‘a -b-c’ correction lower that has completed and we will have to neutralise, as it is possible that the markets next move will be on the topside, however the Elliott wave counts remain neutral or even negative and for now we are side lined. Below the market we have 1.2014 the September high and the 1.2003 2020-2021 uptrend, which we suspect will hold.”

“Assuming that the uptrend (1.2003) and 23.6% retracement of the move up since March 2020 (1.1945) holds; medium-term the market continues to track higher whilst targeting the 1.2556 2018 high and 1.2624, the 200-month moving average, which remains our longer-term target.”