EUR/USD below 1.2110 will end the move higher – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair needs to close below 1.2110 in order to confirm the up move is over.

Key Quotes

“EUR/USD continues to rally higher from the 1.2110 2017-2018 uptrend. It is approaching tough resistance at 1.2556/1.2651 (recent high and 10 year downtrend), and currently we have our doubts that the market has enough momentum to clear this resistance. It should be noted that we now have a market stuck between a one year uptrend and a 10 year downtrend. I am slightly biased to failure, but I am not married to the view. Near term Elliott wave counts are conflicting so we have exited our long positions”.

“A close below 1.2110 will be needed to confirm the end of the move higher”.

“Above the 2008-2018 resistance line at 1.2651 would target 1.3190 the 50% retracement of the move down from 2008”.