EUR/USD still points to a test of 1.0700 – Commerzbank

Pablo Piovano FXStreet

According to technicals, the pair could still attempt a test of the 1.0700 handle and above, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/USD has seen a slight erosion of the short term resistance line, which has not been sustained – it is too early to say whether this is a false break or just premature. The intraday Elliott wave counts are conflicting but suggest a test of 1.0700/07, the recent spike high and the 38.2% retracement. There is scope for 1.0875 the December high. The market stays bid near term while above the 1.0474 20 day ma”.

“Failure here would cast attention back to the 1.0372/40 recent lows. We await a close below the 1.0372/40 lows from mid December 2016 to trigger another leg lower. Below 1.0340 will target parity and the 78.6% retracement at .9900 of the move 2000 to 2008”.

Sell 60%

Buy 40%

Avg Sell Price 1.0533

Avg Buy Price 1.0540

Liquidity Distribution

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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