EUR/USD: Further downside could extend to 1.0981 – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, noted EUR/USD still risks a potential move to levels below the 1.10 mark.

Key Quotes

“EUR/USD has sold off towards and is currently holding the uptrend at 1.1069. The intraday Elliott wave signals are neutralising and ideally this will hold, however the risk remains for a possible break lower and this would target the 1.0981 29th November low and neutralise the immediate outlook. Initial resistance is the 1.1134 200 day ma.”

“Overhead the market is facing tough resistance at 1.1184-1.1240 – namely the 55 week ma, the 2019-2020 down channel and the recent high. This guards the 200 week ma at 1.1359, which continues to represent a critical break point medium term.”