EUR/USD scope for a retracement to 1.1806 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair is now attempting some consolidation and could retest the 1.1800 region.

Key Quotes

“EUR/USD has stalled just ahead of the 78.6% retracement at 1.1976 and is consolidating very near term. We would allow for a small retracement towards the near term uptrend, today at 1.1808. While this holds immediate upside pressure is maintained, a close below here and preferably below 1.1712 the recent low is needed to alleviate immediate upside pressure. We have no strong bias the intraday Elliott wave counts are conflicting”.

“Fibonacci retracement at 1.1976 is regarded as the last defence for the 1.2092 September high”.

“Below the uptrend alleviates upside pressure – below 1.1712 the 21st November low should negate upside pressure”.