EUR/USD now focused on 1.0602 – Commerzbank

In light of the recent price action, the pair has now shifted its attention to the 1.0602/1.0563 band.

Key Quotes

“EUR/USD has failed on its initial attempt at 1.0820/26, which represents the 50% retracement and the top of the cloud, and has now eroded the 20 day ma. This leaves attention on the 55 day ma at 1.0602 and the base of the cloud at 1.0563. We suspect will need to go below the base of the cloud at 1.0563 to negate the current push higher and re-target recent lows at 1.0352/40. The current Elliott wave count on the daily chart suggests that this move lower will terminate circa 1.0600, however the intraday Elliott counts are far more negative”.

“Initial resistance lies at 1.9775 ahead of 1.0820/26. Only above 1.0830 would introduce scope to 1.0875 December high and the 200 day ma at 1.0985”.