EUR/USD bid above 1.1101 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair should stay bid while above 1.1101 for the time being.

Key Quotes

“The Euro continues to hold below the 1.1300 November 2016 high, and has eroded the accelerated uptrend. The near term risk is that losses will extend to the 2 month uptrend at It will remain bid while above the near term uptrend at 1.1101.We note the divergence of the daily RSI and the daily Elliot wave count, which is suggesting that we allow for a retracement back to circa 1.1010. This guards the 200 day ma at 1.0823”.

“Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1474, however we believe it will struggle here from a longer term perspective. We note the 78.6% retracement lies at 1.1343”.