EUR/USD upside pressure mitigated below 1.1065/77 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, a break below the 1.1065/77 band could alleviate the current upside pressure.

Key Quotes

“EUR/USD continues to recover from 1.0944 the 4 month support line. The market is probing the recent highs at 1.1165/87, where we suspect that the move will start to struggle. The intraday Elliott wave counts are conflicting and we have the 2014-2015 resistance line at 1.1318 and we suspect that this will hold and provoke failure”.

“A slide back below the 1.1065/77 20 and 200 day moving averages, should be enough to alleviate immediate upside pressure. Only below 1.0943 will target 1.0821, the March low, and then the 31 year support line at 1.0642. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0574 channel”.