EUR/USD risks further downside near term – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could intensify its downside this week.

Key Quotes

“EUR/USD last week weighed on the downside within its short term trading range”.

“We view the past 4 weeks consolidation as a correction only and this leaves the risk on the downside for this week”.

“The intraday Elliott wave has turned negative and rallies should struggle circa 1.1025. The recent highs at 1.1165/87 are acting as nearby resistance and maintain our negative bias”.

“It leaves the market eyeing 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.