EUR/USD scope for a test of 1.1380 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair remains poised for a test of the 1.1380 area in the very near term.

Key Quotes

“EUR/USD is grinding slowly higher following its recent break of the 1.1273 2014-2016 resistance line, there is a slight upside bias very near term and scope to challenge the 1.1380, the 66.6% retracement. Above 1.1380 will introduce scope to 1.1429/95, the recent high and pivot point, where it is expected to fail”.

“Initial support is 1.1172, the 20 day ma, but intraday the Elliott wave is suggesting pullbacks will hold 1.1240 ahead of another leg higher”.

“Only below the 20 day ma would alleviate immediate upside pressure for a slide to 1.1098 200 day ma and the 1.0960 5 month support line”.