EUR/USD could slip back to 1.2257/18 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could return to the 1.2257/18 band.

Key Quotes

“EUR/USD is backing away from its near term resistance line at 1.2438 and remains ensconced in its range. We should see the market head back to the 1.2257 2017-2018 uptrend and the 1.2218 low from last week. We preferably need to see a close below the 1.2155 Feb 2018 low to confirm a break down/top formation”.

“Intraday Elliott wave counts are conflicting suggesting that the rally will fail well ahead of the 1.2556 February high and the 1.2622 long term downtrend”.

“Above the 2008-2018 resistance line at 1.2622 lies the 1.3190 50% retracement of the move down from 2008 (not favoured)”.