EUR/USD could see a correction lower in the near term – Commerzbank

In view of Karen Jones, Team Head FICC Technical Analysis at Commerzbank, the pair risks a move lower in the short term with support in the 1.1110/08 band.

Key Quotes

“EUR/USD is consolidating tightly sideways just below resistance at 1.1285 and the 200 day ma at 1.1291. The consolidation is viewed in a positive light, intraday Elliott wave counts remain positive, however lack of upside progress is worrying and it is possible that we will see a minor sell off first. Key resistance is 1.1354/71, the 2018-2019 down channel and the 55 week ma. A weekly close above this latter level is needed for us to adopt an outright bullish stance”.

“Dips lower are likely to find some support circa 1.1110/06. Key support is the 1.1027 recent low and the 1.0961 2018-2019 support line. Below here lies the 78.6% retracement at 1.0814/78.6% retracement”.