EUR/USD keeps the upside bias in the near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s stance remains positive while above 1.1704.

Key Quotes

“EUR/USD is viewed as stable to positive while above the 20 day ma at 1.1704 and we will continue to assume a near term upside bias. The correction higher is capable of testing the recent high at 1.1880 and the 61.8% retracement at 1.1886. Above the 1.1858/1.1910 area (early August and October highs) lies the 1.1976/78.6% retracement then the 1.2092 September high. We note the 13 count on the 240 hour chart and will partially cover longs, for the remainder we have tightened stops”.

“Should failure at 1.1880/1.1910 be seen then we should see the market retest the 200 day ma at 1.1345. However intraday Elliott wave counts are positive”.

“A slide back and close below the 20 day ma at 1.1685”.