EUR/USD room for a test of 1.1800 – Commerzbank
In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could attempt a rebound to the 1.1800 handle.
“EUR/USD continues to correct higher. The new low was recently not confirmed by the daily RSI and this suggests a loss of downside momentum, current intraday Elliott counts are implying scope for a 1.1800 rebound. Beyond this rebound we remain negative, the market has recently completed a head and shoulders top pattern and a bear flag pattern – this is very negative price action. The measurement down from the head and shoulders is 1.1232. The 200 day ma lies at 1.1298 just ahead of here”.
“The outlook remains negative while capped by the current October highs and early August high at 1.1858/1.1910. Additional support is offered by the mid-June high at 1.1296 and the more important 1.1110 end of May low”.
“Above the 1.1858/1.1910 area (early August and October highs) lies the 1.2092 September high”.